OCTOBER 31, 2000
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CHASE VISTA
EQUITY FUNDS
ANNUAL REPORT
CORE EQUITY FUND
EQUITY GROWTH FUND
GROWTH AND
INCOME FUND
CAPITAL GROWTH FUND
LARGE CAP
EQUITY FUND
FOCUS FUND
EQUITY INCOME FUND
SMALL CAP
OPPORTUNITIES FUND
SMALL CAP
EQUITY FUND
BALANCED FUND
[LOGO] CHASE
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THE RIGHT RELATIONSHIP IS EVERYTHING.-Registered Trademark-
CONTENTS
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Chairman's Letter 1
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Chase Vista Core Equity Fund 2
Fund Commentary
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Chase Vista Equity Growth Fund 5
Fund Commentary
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Chase Vista Growth and Income Fund 8
Fund Commentary
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Chase Vista Capital Growth Fund 11
Fund Commentary
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Chase Vista Large Cap Equity Fund 14
Fund Commentary
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Chase Vista Focus Fund 17
Fund Commentary
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Chase Vista Equity Income Fund 20
Fund Commentary
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Chase Vista Small Cap Opportunities Fund 23
Fund Commentary
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Chase Vista Small Cap Equity Fund 26
Fund Commentary
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Chase Vista Balanced Fund 29
Fund Commentary
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Portfolios of Investments 32
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Fund Financial Statements 53
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Portfolio Financial Statements 95
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HIGHLIGHTS
- -- U.S. large-cap equities provided positive returns in a difficult year.
- -- Mid- and small-cap equities staged a quiet bull market.
- -- Treasury bonds posted gains as economic growth slowed from high levels and
CPI inflation appeared under control.
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NOT FDIC INSURED May lose value / No bank guarantee
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Chase Vista Funds are distributed by Vista Fund Distributors, Inc.
CHASE VISTA EQUITY FUNDS
CHAIRMAN'S LETTER
December 4, 2000
Dear Shareholder:
We are pleased to present this annual report for the Chase Vista Equity Funds
for the year ended October 31, 2000.
TECHNOLOGY ROLLER-COASTER DOMINATES STOCK MARKETS
While the U.S. economy remained healthy throughout the period, large-cap U.S.
equities posted their lowest return for several years. The S&P 500 Index rose
6.08%, which compares with average returns of more than 20% over the previous
five years. In the closing months of 1999, it appeared that this would be a
period of strong returns. Technology stocks staged a magnificent rally, as New
Economy euphoria gripped the stock market. The Internet appeared about to
revolutionize commerce, and the large U.S. networking and semiconductor
companies soared to new highs.
The rally continued through the early months of 2000, only to falter in the
spring when dot-com businesses began to experience cash flow difficulties. In
the months that followed, one technology stock after another came crashing to
earth. The final setback came in the fall, when a number of companies warned
that third-quarter profits would not meet expectations. The technology
correction happened against a background of uncertainty regarding U.S. rates.
During the summer there were concerns regarding whether Federal Reserve Board
rates rises had succeeded in dampening runaway economic growth. Once it became
clear late summer that growth was slowing, worries began to emerge regarding the
effect on corporate profits.
But mid- and small-caps bucked the trend and quietly marched to new highs. The
S&P 400 Mid Cap Index climbed 31.65% in the year, while the S&P Small Cap 600
Index gained 25.26%. Both groups were driven by buoyant earnings growth. Indeed,
their earnings growth rates exceeded those of large caps for the first time in
many years.
U.S. Treasury bonds, too, had a strong year. Following the three Fed rate rises
in the 12 months - in February, March and May - evidence that the U.S. economy
was indeed slowing fuelled a rally, particularly in longer-dated maturities.
Weak spots were corporate and mortgage bonds, where credit concerns undermined
prices.
PROMISING OPPORTUNITIES
Against a background of stock price volatility, there are now a number of large
companies with promising growth rates trading at attractive valuations.
Additionally, mid- and small-caps are expected to continue to report strong
earnings. Subdued inflation should remove the need for further Fed rate rises,
underpinning both equity and bond markets.
All of us at Chase thank you for your investment and are pleased to help you in
the pursuit of your financial goals.
Sincerely yours,
/s/ Fergus Reid
Fergus Reid
Chairman
1
CHASE VISTA CORE EQUITY FUND
As of October 31, 2000 (Unaudited)
HOW THE FUND PERFORMED
Chase Vista Core Equity Fund, which seeks to provide capital growth by investing
in large cap common stocks, had a total return of 5.44% (Class A shares, without
sales charge) in the year ended October 31, 2000. This compares with the 6.08%
return of the S&P 500 Index.
HOW THE FUND WAS MANAGED
Extraordinary volatility in technology stocks buffeted the Fund during the 12
months ended October. A common belief that technology and the Internet would
transform the world economy with an almost immediate effect drove an enormous
rally in the last few months of 1999 and beginning of 2000. But in the early
spring, dot-coms started to trim their staff and technology stock prices started
to fall.
The extent of the speculative frenzy can be seen in the valuations that many
stocks reached. Cisco Systems, for example, is the world's largest network
equipment company and a certain beneficiary of the rush to build more
telecommunications and Internet infrastructure. But Cisco's stock market
valuation was more than that of the entire S&P 600 Small Cap Index. Even given
the brightest of prospects, this valuation could not be justified.
After reaching a peak in March, the Fund fell back with the technology stocks
that form almost a third of its S&P 500 benchmark. Large caps' woes were
compounded in the autumn when companies as diverse as Intel and Home Depot
announced third quarter profit warnings. Much of the Fund's underperformance of
benchmark can be attributed to this post-March period, when a number of its
growth stock holdings came under pressure. Additionally, due to the Fund's
longer-term focus, core holdings such as Microsoft and Wal-Mart, with proven
track records and meaningful growth prospects, were retained. Despite their
short-term underperformance, management believes such stocks should help drive
the market higher during extended rallies in the future.
Stock picks from a wide variety of sectors were solid in the year. Technology
stocks like EMC Corp, the data storage provider, and Sanmina Corp, which offers
outsourced manufacturing to technology groups, performed well. In utilities,
Enron Corp and AES Corp made gains. Elsewhere, Southwest Airlines, Walgreen Co
and American International Group were all buoyant names.
LOOKING AHEAD
The manager is analyzing where future outperformance may come from, employing a
combination of technical and fundamental analysis. Some of the telecom-service
companies have fallen sharply in the past year and appear ready to rally. These
include a number of regional phone companies and wireless phone providers.
Additionally, selecting the right technology stocks will have a major impact on
future performance. Technology names will be identified on a stock-by-stock
basis.
2
CHASE VISTA CORE EQUITY FUND
As of October 31, 2000 (Unaudited)
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
[PIE CHART]
Technology 27.8%
Financial 15.7%
Consumer Cyclicals 13.2%
Health Care 12.2%
Utilities 8.3%
Capital Goods 6.5%
Energy 6.0%
Cash Equivalents & Short Term Paper 4.0%
Consumer Staples 3.9%
Transportation 1.6%
Basic Materials 0.8%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. GENERAL ELECTRIC CO. (4.8%) Develops, manufactures and markets products for
the generation, distribution and utilization of electricity. Through General
Electric Capital Services, Inc., offers a variety of financial services
including mutual fund management, financing, asset management and insurance. It
also owns the National Broadcasting Company.
2. AMERICAN INTERNATIONAL GROUP, INC. (3.9%) Writes property, casualty and life
insurance and provides a variety of insurance and insurance-related services
through its subsidiaries in the United States and overseas.
3. EXXON MOBIL CORP. (3.5%) Operates petroleum and petrochemicals business on a
worldwide basis. Operations include exploration and production of oil and gas,
electric power generation and coal and minerals operations.
4. MICROSOFT CORP. (2.9%) Develops, manufactures, licenses, sells and supports
software products.
5. CISCO SYSTEMS, INC. (2.8%) Supplies data networking products to the corporate
enterprise and public wide area service provider markets. Products include
routers, LAN switches, frame relay/ATM and remote access concentrators.
6. AMERICAN EXPRESS CO. (2.8%) Through its subsidiaries, the Company provides
travel-related, financial advisory and international banking services around the
world. Its products include the American Express Card, the Optima Card and
American Express Travelers Cheques.
7. CITIGROUP, INC. (2.7%) A diversified financial services holding company that
provides investment banking, retail brokerage, corporate banking and cash
management products and services around the world.
8. PFIZER, INC. (2.6%) A research-based, global pharmaceutical company that
discovers, develops, manufactures and markets medicines for humans and animals.
Its products include prescription pharmaceuticals, non-prescription
self-medications and animal health products.
9. INTEL CORP. (2.5%) Designs, manufactures and sells computer components and
related products. Major products include microprocessors, chipsets, embedded
processors and microcontrollers, flash memory products, graphics products,
network and communications products, system management software, conferencing
products and digital imaging products.
10. WAL-MART STORES, INC. (2.3%) Operates discount stores and Supercenters as
well as Sam's Clubs which offer merchandise such as apparel, housewares, small
appliances, electronics and hardware.
Top 10 equity holdings comprised 30.8% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
3
CHASE VISTA CORE EQUITY FUND
As of October 31, 2000 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
SINCE
INCEPTION
1 YEAR 5 YEARS (4/1/93)
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Class A Shares
Without Sales Charge 5.44% 21.26% 16.44%
With Sales Charge -0.62% 19.83% 15.53%
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Class B Shares
Without CDSC 4.68% 20.70% 15.90%
With CDSC -0.32% 20.51% 15.90%
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Class C Shares
Without CDSC 4.68% 20.70% 15.90%
With CDSC 3.68% 20.70% 15.90%
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LIFE OF FUND PERFORMANCE (4/1/93 TO 10/31/00)
[LINE CHART]
Chase Vista Lipper Large-Cap
Core Equity Fund (Class A) S&P 500 Index Core Funds Index
4/93 $9,425 $10,000 $10,000
10/93 $10,057 $10,520 $10,616
10/94 $9,860 $10,926 $10,857
10/95 $11,407 $13,810 $13,206
10/96 $13,875 $17,132 $15,968
10/97 $18,313 $22,628 $20,516
10/98 $21,918 $27,606 $24,235
10/99 $28,361 $34,690 $29,911
10/00 $29,905 $36,800 $32,790
Source: Lipper Analytical Services.
Past performance is not indicative of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
Sales charge for Class A Shares: 5.75%. Class B Shares CDSC: 5% for the one-year
period, 2% for the five-year period and 0% for the period since inception. Class
C Shares CDSC: 1% for the one-year period, 0% thereafter.
The Fund commenced operations on 8/12/99. Class B and C Shares were introduced
on 8/12/99 and 8/13/99, respectively. Prior performance is based upon the Chase
Core Equity Fund, and has been adjusted to reflect historical expenses (absent
waivers and reimbursements) at the Fund's inception and reflects the maximum
5.75% sales charge for Class A Shares. The Fund is currently waiving fees. The
waiver may be terminated, which would reduce performance.
Chart illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 5.75% sales charge. Performance
of the indices does not include sales charges, but includes reinvestment of all
distributions. The S&P 500 Index is a broad-based index that replicates the U.S.
stock market. The Lipper Large-Cap Core Funds Index represents the performance
of the 30 largest funds that invest in both growth and value stocks. Investors
cannot invest directly in an index.
4
CHASE VISTA EQUITY GROWTH FUND
As of October 31, 2000 (Unaudited)
HOW THE FUND PERFORMED
Chase Vista Equity Growth Fund, which seeks to provide capital growth by
investing in large cap growth stocks, had a total return of -0.09% (Class A
shares, without sales charge) in the year ended October 31, 2000. This compares
with a rise of 2.07% from the S&P 500/BARRA Growth Index.
HOW THE FUND WAS MANAGED
Extraordinary volatility in technology stocks buffeted the Fund during the 12
months to end October. A common belief that technology and the Internet would
transform the world economy with almost immediate effect drove an enormous rally
in the last few months of 1999 and beginning of 2000. But in the early spring,
dot-coms started reduce their staff and technology stock prices started to fall.
The extent of the speculative frenzy can be seen in the valuations that many
stocks reached. Cisco Systems, for example, is the world's largest network
equipment company and a certain beneficiary of the rush to build more
telecommunications and Internet infrastructure. But Cisco's stock market
valuation was more than that of the entire S&P 600 Small Cap Index. Even given
the brightest of prospects, this valuation was extreme.
After reaching a peak in March, the Fund fell back with the technology stocks
that form much of its benchmark index. Large caps' woes were compounded in the
autumn when companies as diverse as Intel and Home Depot announced third quarter
profit warnings. Much of the Fund's underperformance of the benchmark can be
attributed to this period, when a number of its high growth names came under
pressure.
In particular, it suffered from falls in information technology and
telecommunications services. Microsoft came under pressure following the Justice
department's antitrust ruling. And Lucent Technologies fell sharply, as did
long-distance telecom groups AT&T and Sprint.
Even so, some stock picks performed well. Data storage provider EMC Corp was the
strongest contributor. Novellus Systems was another buoyant technology stock,
and biotechnology company Amgen also did well. In financial services, Merrill
Lynch and Charles Schwab recorded gains.
LOOKING AHEAD
The manager is analyzing where future outperformance may come from, employing a
combination of technical and fundamental analysis. Selecting the technology
stocks that will prosper is key to future performance. These stocks form the
most significant part of the benchmark index, and so the manager is seeking the
companies with the enabling technologies of the future. Biotechnology is also a
focus.
5
CHASE VISTA EQUITY GROWTH FUND
As of October 31, 2000 (Unaudited)
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
[PIE CHART]
Technology 41.2%
Health Care 18.2%
Consumer Cyclicals 14.3%
Capital Goods 8.8%
Cash Equivalents & Short-Term Paper 7.0%
Financial 6.9%
Consumer Staples 2.9%
Utilities 0.7%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. EMC CORP. (6.2%) Provides enterprise storage systems, software, networks and
services.
2. GENERAL ELECTRIC CO. (6.1%) Develops, manufactures and markets products for
the generation, distribution and utilization of electricity. Through General
Electric Capital Services, Inc., offers a variety of financial services
including mutual fund management, financing, asset management and insurance. It
also owns the National Broadcasting Company.
3. CISCO SYSTEMS, INC. (5.0%) Supplies data networking products to the corporate
enterprise and public wide area service provider markets. Products include
routers, LAN switches, frame relay/ATM and remote access concentrators.
4. INTEL CORP. (4.4%) Designs, manufactures and sells computer components and
related products. Major products include microprocessors, chipsets, embedded
processors and microcontrollers, flash memory products, graphics products,
network and communications products, system management software, conferencing
products and digital imaging products.
5. PFIZER, INC. (4.4%) A research-based, global pharmaceutical company that
discovers, develops, manufactures and markets medicines for humans and animals.
Its products include prescription pharmaceuticals, non-prescription
self-medications and animal health products.
6. MICROSOFT CORP. (3.3%) Develops, manufactures, licenses, sells and supports
software products.
7. AMGEN, INC. (3.0%) Discovers, develops, manufactures and markets human
therapeutics based on cellular and molecular biology. The Company focuses its
research on secreted protein and small molecule therapeutics.
8. WAL-MART STORES, INC. (3.0%) Operates discount stores and Supercenters as
well as Sam's Clubs which offer merchandise such as apparel, housewares, small
appliances, electronics and hardware.
9. NOVELLUS SYSTEMS, INC. (2.9%) Manufactures, markets and services advanced
automated wafer fabrication systems for the deposition of thin films.
10. APPLIED MATERIALS, INC. (2.9%) Develops, manufactures, markets and services
semiconductor wafer fabrication equipment and related spare parts for the
worldwide semiconductor industry.
Top 10 equity holdings comprised 41.2% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
6
CHASE VISTA EQUITY GROWTH FUND
As of October 31, 2000 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
- ---------------------------------------------------------------------------------
Class A Shares
Without Sales Charge -0.09% 21.32% 16.75%
With Sales Charge -5.84% 19.89% 16.06%
- ---------------------------------------------------------------------------------
Class B Shares
Without CDSC -0.86% 21.08% 16.64%
With CDSC -5.81% 20.90% 16.64%
- ---------------------------------------------------------------------------------
Class C Shares
Without CDSC -0.86% 21.08% 16.64%
With CDSC -1.85% 21.08% 16.64%
- ---------------------------------------------------------------------------------
[LINE CHART]
10-YEAR PERFORMANCE (10/31/90 TO 10/31/00)
Chase Vista S&P 500/BARRA Lipper Large-Cap
Equity Growth Fund (Class A) Growth Index Growth Funds Index
10/90 $9,425 $10,000 $10,000
10/91 $12,165 $13,617 $14,030
10/92 $12,892 $15,189 $15,174
10/93 $13,961 $16,073 $17,727
10/94 $14,209 $16,952 $18,302
10/95 $16,881 $21,990 $23,228
10/96 $19,677 $27,207 $27,836
10/97 $26,743 $36,543 $35,594
10/98 $33,714 $48,192 $42,427
10/99 $44,402 $63,415 $58,190
10/00 $44,359 $64,759 $63,328
Source: Lipper Analytical Services.
Past performance is not indicative of future results. Investment return and
principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than their original cost.
Sales charge for Class A Shares: 5.75%. Class B Shares CDSC: 5% for the one-year
period, 2% for the five-year period and 0% for the 10-year period. Class C
Shares CDSC: 1% for the one-year period, 0% thereafter.
The Fund commenced operations on 8/12/99. Class B and C Shares were introduced
on 8/13/99 and 8/20/99, respectively. Prior performance is based upon the Chase
Equity Growth Fund, and has been adjusted to reflect historical expenses (absent
waivers and reimbursements) at the Fund's inception and reflects the maximum
5.75% sales charge for Class A shares. The Fund is currently waiving fees. The
waiver may be terminated, which would reduce performance.
Chart illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 5.75% sales charge. Performance
of the indices does not include sales charges, but includes reinvestment of all
distributions. The S&P 500/BARRA Growth Index contains companies with higher
price-to-book ratios relative to the S&P 500. The Lipper Large-Cap Growth Funds
Index represents the performance of the 30 largest funds that invest in
large-cap growth stocks. Investors cannot invest directly in an index.
7
CHASE VISTA GROWTH AND INCOME FUND
As of October 31, 2000 (Unaudited)
HOW THE FUND PERFORMED
Chase Vista Growth and Income Fund, which invests in large U.S. value stocks
seeking capital growth, rose 8.88 % (class A shares, without sales charge) in
the year ended October 31, 2000. This compares with 9.68% for the S&P 500/BARRA
Value Index.
HOW THE FUND WAS MANAGED
As technology stocks fell from grace in the latter half of the 12-month period,
value stocks returned to favor. Companies in sectors like financials and
pharmaceuticals were re-rated, generating strong Fund performance at precisely
the time of greatest carnage in the technology sector.
While some financial companies began the year trading on price-to-book values (a
measurement of net asset value) as low as two to three times, some of the more
favored stocks finished the period on multiples as high as seven times. The
dismantling in late 1999 of the Depression era Glass-Steagall Act sparked much
of the revaluation. It had kept securities brokerage and commercial banking
businesses separate. The move unleashed a wave of M&A activity as many financial
institutions found it more effective to buy `scale' than to build it. This
allowed many financial stocks to be priced at close to true value.
Financial services companies with high exposure to corporate and investment
banking activities performed well. Fund holdings American International Group,
Citigroup, Morgan Stanley Dean Witter, Merrill Lynch and Bank of New York all
made gains.
In healthcare, valuations rose from a less depressed level. These companies
prospered as the threat of government intervention to reduce drug prices
appeared to dissipate. The Fund's leading sector performers were Abbott
Laboratories, American Home Products, Eli Lilly and Pharmacia.
Though the technology correction held back the Fund's performance, some tech
arenas, such as information technology, made significant contributions. The
manager reduced the semiconductor weighting throughout the year, captured gains
from the late 1999/early 2000 rally, and minimized losses when technology
sentiment turned. Stocks such as Altera, Intel and Texas Instruments contributed
to gains.
LOOKING AHEAD
The manager is currently seeking undervalued names from across the market. Many
stocks with solid financial fundamentals are currently trading on reasonable
valuations. If stocks continue to be volatile, the Fund will benefit from its
conservative "value" mandate.
8
CHASE VISTA GROWTH AND INCOME FUND
As of October 31, 2000 (Unaudited)
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
[PIE CHART]
Financial 30.9%
Utilities 13.7%
Energy 12.6%
Consumer Cyclicals 8.7%
Health Care 7.8%
Technology 6.7%
Capital Goods 6.3%
Cash Equivalents & Short-Term Paper 6.2%
Basic Materials 4.7%
Consumer Staples 2.4%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. AMERICAN INTERNATIONAL GROUP, INC. (6.2%) Writes property, casualty and life
insurance and provides a variety of insurance and insurance-related services
through its subsidiaries in the United States and overseas.
2. CITIGROUP, INC. (5.6%) A diversified financial services holding company that
provides investment banking, retail brokerage, corporate banking and cash
management products and services around the world.
3. EXXON MOBIL CORP. (5.2%) Operates petroleum and petrochemicals business on a
worldwide basis. Operations include exploration and production of oil and gas,
electric power generation and coal and minerals operations.
4. AMERICAN EXPRESS CO. (3.4%) Through its subsidiaries, the Company provides
travel-related, financial advisory and international banking services around the
world. Its products include the American Express Card, the Optima Card and
American Express Travelers Cheques.
5. VERIZON COMMUNICATIONS (3.4%) Provides wireline voice and data services,
wireless services, Internet services and published directory information. The
Company also provides network services for the federal government including
business phone lines, data services, telecommunications equipment and payphones.
Verizon has operations worldwide.
6. WELLS FARGO CO. (3.0%) A diversified financial services company providing
banking, insurance, investments, mortgage and consumer finance. The Company
operates through physical stores, the Internet and other distribution channels
across North America and elsewhere internationally.
7. ROYAL DUTCH PETROLEUM CO., N.Y. REGISTERED SHARES (NETHERLANDS) (2.9%)
Involved in all phases of the petroleum and petrochemicals industries from
exploration to final processing, delivery and marketing.
8. BANK OF NEW YORK CO., INC. (2.7%) Through its subsidiaries, the Company
provides a complete range of banking and other financial services to
corporations and individuals worldwide. Its services include securities
servicing and cash processing, corporate banking, asset-based lending, private
and retail banking, asset management and financial market services.
9. PHARMACIA CORP. (2.7%) Researches, manufactures and sells pharmaceuticals
worldwide. The Company's pharmaceutical segment includes prescription products
for humans and animals, bulk pharmaceuticals and contract manufacturing. Its
agricultural products segment is comprised of agricultural chemicals, seeds and
genomics, as well as animal productivity and nutrition research.
10. MORGAN STANLEY DEAN WITTER & CO. (2.4%) Provides financial and investment
products and services worldwide. The Company offers securities investment, asset
management and credit and transaction services. Its products include mutual
funds and Discover credit cards.
Top 10 equity holdings comprised 37.5% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
9
CHASE VISTA GROWTH AND INCOME FUND
As of October 31, 2000 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
- ---------------------------------------------------------------------------------
Class A Shares
Without Sales Charge 8.88% 15.61% 18.28%
With Sales Charge 2.63% 14.25% 17.58%
- ---------------------------------------------------------------------------------
Class B Shares
Without CDSC 8.32% 15.03% 17.86%
With CDSC 3.69% 14.80% 17.86%
- ---------------------------------------------------------------------------------
Class C Shares
Without CDSC 8.31% 14.65% 17.67%
With CDSC 7.39% 14.65% 17.67%
- ---------------------------------------------------------------------------------
Class I Shares 9.34% 16.05% 18.51%
- ---------------------------------------------------------------------------------
10-YEAR PERFORMANCE (10/31/90 TO 10/31/00)
[LINE CHART]
Chase Vista S&P 500/BARRA Lipper Multi-Cap
Growth & Income Fund (Class A) Value Index Value Funds Index
10/90 $9,425 $10,000 $10,000
10/91 $15,326 $13,617 $13,142
10/92 $17,216 $15,189 $14,475
10/93 $20,740 $16,072 $17,348
10/94 $20,773 $16,952 $18,006
10/95 $24,468 $21,990 $21,626
10/96 $29,262 $27,205 $26,069
10/97 $37,701 $36,536 $33,699
10/98 $41,129 $48,248 $35,319
10/99 $46,402 $61,312 $38,813
10/00 $50,514 $67,253 $42,641
Source: Lipper Analytical Services.
Past performance is not indicative of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
Sales charge for Class A Shares: 5.75%. Class B Shares CDSC: 5% for the one-year
period, 2% for the five-year period and 0% for the 10-year period. Class C
Shares CDSC: 1% for the one-year period, 0% thereafter.
The Fund commenced operations on 9/23/87. Class B, C and I Shares were
introduced on 11/4/93, 1/2/98 and 1/25/96, respectively. Performance is based on
historical expenses of the predecessor Class A Shares, which are lower than the
expenses for Class B and C Shares and higher than Class I Shares. The Fund is
currently waiving fees. The waivers may be terminated, which will reduce
performance.
Chart illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 5.75% sales charge. Performance
of the indices does not include sales charges, but includes reinvestment of all
distributions. The S&P 500/BARRA Value Index contains large U.S. companies with
low price-to-book ratios relative to the S&P 500. The Lipper Multi-Cap Value
Funds Index represents the performance of funds that invest in securities with a
variety of market capitalizations. Investors cannot invest directly in an index.
10
CHASE VISTA CAPITAL GROWTH FUND
As of October 31, 2000 (Unaudited)
HOW THE FUND PERFORMED
Chase Vista Capital Growth Fund, which seeks capital gains from a portfolio of
mid-cap stocks, rose 25.81% (class A shares, without sales charge) in the year
ended October 31, 2000. This compares with the 31.65% return from the S&P 400
MidCap Index.
HOW THE FUND WAS MANAGED
Mid-cap equities proved the place to be in the 12-month period as their low
valuations and improving relative earnings growth overtook that of larger
companies. Mid-cap stock prices demonstrated a strong performance both in
absolute terms and relative to large caps.
While many of the gains occurred during the late 1999/early 2000
technology-inspired rally, price rises continued later in the year when large
caps ran out of steam. Mid-cap stocks were squeezed higher both as large-cap
fund managers sought diversification, and as small-cap managers looked to place
fund inflows in liquid mid-cap stocks.
Although the technology correction put a damper on the Fund's performance, a
change in the S&P 400 MidCap benchmark index in early spring helped the Fund
better weather the correction. Many of the bigger technology index constituents
were promoted to the large cap S&P 500 index. When the technology correction
began in March, the Fund sold or trimmed many technology stocks to be better
aligned with the benchmark weight.
Consequently, some areas of technology like semi-conductor companies still
contributed to returns. Semiconductor stocks had benefited early in the year as
the boom in telecommunications equipment and infrastructure increased demand for
chips. This boosted earnings of chip manufacturers like Atmel and Vitesse.
Another beneficiary was KLA-Tencor, which supplies semiconductor yield
management and process control equipment.
In healthcare, a number of stocks performed well. Forest Laboratories moved
higher with the success of Celexa, a new generation anti-depressant drug.
Biovail also did well in anticipation of buoyant generic drug earnings as a
large number of branded drug patents expire.
Rising energy prices favored exploration and production companies like Anadarko
Petroleum. Additionally, energy service companies Cooper Cameron and Global
Marine moved higher.
LOOKING AHEAD
Superior earnings growth should continue to drive mid-caps. Mid-cap earnings are
forecast to grow faster than those of large-cap companies, and yet mid-caps
continue to trade on significantly lower valuations.
11
CHASE VISTA CAPITAL GROWTH FUND
As of October 31, 2000 (Unaudited)
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
[PIE CHART]
Technology 21.0%
Consumer Cyclicals 18.2%
Health Care 16.5%
Energy 11.7%
Financial 11.5%
Utilities 5.7%
Cash Equivalents & Short-Term Paper 4.9%
Capital Goods 4.0%
Basic Materials 3.2%
Consumer Staples 1.2%
Real Estate 1.2%
Transportation 0.9%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. ANDARKO PETROLEUM CORP. (3.4%) An independent oil and gas exploration and
production company. The Company explores for oil in Kansas, Oklahoma and Texas,
as well as offshore in the Gulf of Mexico and in Alaska. It also owns and
operates gas gathering systems in its United States core producing areas. The
Company develops crude oil reserves in Algeria.
2. PERKINELMER, INC. (2.7%) Provides products and systems to the medical,
pharmaceutical, telecommunications, semiconductor and photographic markets
located worldwide. Its products include seals and bellows, hardware and
software, opto-electronics and bioanalytic and diagnostic instrument systems.
3. BIOVAIL CORP. INTERNATIONAL (CANADA) (2.5%) An international,
fully-integrated pharmaceutical company that develops, tests and manufactures
drugs. The Company utilizes controlled-release, rapid dissolve, enhanced
absorption and taste masking technologies. Biovail markets its products directly
in Canada and through strategic licensing partners internationally.
4. RATIONAL SOFTWARE CORP. (2.3%) Develops and markets a variety of software
development tools, services and software engineering best practices. The
Company's products and services help organizations develop and deploy Web,
e-business, enterprise-wide, technical and embedded software.
5. CONCORD EFS, INC. (2.1%) Provides electronic transaction authorization,
processing, settlement and funds transfer services across the United States. The
Company provides merchant card services, as well as automated teller machine
services. Concord markets its services to supermarket chains, financial
institutions, petroleum and convenience stores, the trucking industry and other
retailers.
6. FOREST LABORATORIES, INC. (2.1%) Develops, manufactures and sells both
branded and generic forms of ethical products which require a physician's
prescription. The Company also manufactures non- prescription pharmaceutical
products sold over-the-counter, which are used for the treatment of a wide range
of illnesses. Forest's products are marketed in the United States and eastern
Europe.
7. HEALTH MANAGEMENT ASSOCIATES, INC. (2.0%) Operates general acute care
hospitals in rural communities located primarily in the southeastern and
southwestern United States. The Company's facilities offer a wide range of
medical and surgical services.
8. ACE LTD (BERMUDA) (2.0%) A holding company for the ACE Group of Companies, a
property and casualty insurance business. The group provides a diversified range
of products and services to clients through operations in countries around the
world. ACE provides specialty insurance and reinsurance products such as
agri-business, information technology, marine and property catastrophe
insurance.
9. RADIAN GROUP, INC. (1.9%) Provides private mortgage insurance and risk
management services to mortgage lenders nationwide. The Company's services
increase home ownership opportunities by helping people to buy homes with down
payments of less than 20%. Private mortgage insurance protects lenders from
default-related losses and facilitates the sale of loans.
10. BRINKER INTERNATIONAL, INC. (1.9%) Operates, develops and franchises Chili's
Grill & Bar, Romano's Macaroni Grill, On the Border Mexican Cafe, Cozymel's
Coastal Mexican Grill, Maggiano's Little Italy and Corner Bakery Cafe restaurant
concepts. The Company is also involved in the operation and development of the
Eatzi's Market and Bakery, Big Bowl and Wildfire concepts.
Top 10 equity holdings comprised 22.9% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
12
CHASE VISTA CAPITAL GROWTH FUND
As of October 31, 2000 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
1 YEAR 5 YEARS 10 YEARS
- -------------------------------------------------------------------------------
Class A Shares
Without Sales Charge 25.81% 16.80% 21.02%
With Sales Charge 18.59% 15.43% 20.30%
- -------------------------------------------------------------------------------
Class B Shares
Without CDSC 25.21% 16.23% 20.60%
With CDSC 20.21% 16.01% 20.60%
- -------------------------------------------------------------------------------
Class C Shares
Without CDSC 25.25% 16.05% 20.51%
With CDSC 24.25% 16.05% 20.51%
- -------------------------------------------------------------------------------
Class I Shares 26.34% 17.24% 21.24%
- -------------------------------------------------------------------------------
10-YEAR PERFORMANCE (10/31/90 TO 10/31/00)
[LINE CHART]
Chase Vista S&P MidCap Lipper Mid-Cap
Capital Growth Fund (Class A) 400 Index Value Funds Index
10/90 $9,425 $10,000 $10,000
10/91 $16,961 $16,111 $13,455
10/92 $19,367 $17,852 $14,703
10/93 $24,996 $21,695 $17,538
10/94 $25,655 $22,211 $17,710
10/95 $29,215 $26,922 $20,344
10/96 $35,489 $31,593 $24,397
10/97 $44,879 $41,914 $31,224
10/98 $44,161 $44,727 $28,917
10/99 $50,472 $54,152 $31,574
10/00 $63,508 $71,353 $37,489
Source: Lipper Analytical Services.
Past performance is not indicative of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
Sales charge for Class A Shares: 5.75%. Class B Shares CDSC: 5% for the one-year
period, 2% for the five-year period and 0% for the 10-year period. Class C
Shares CDSC: 1% for the one-year period, 0% thereafter.
The Fund commenced operations on 9/23/87. Class B, C and I Shares were
introduced on 11/4/93, 1/2/98 and 1/25/96, respectively. Performance is based on
historical expenses of the predecessor Class AShares, which are lower than the
expenses for Class B and C Shares and higher than Class I Shares. The Fund is
currently waiving fees.The waiver may be terminated, which would reduce
performance.
Chart illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 5.75% sales charge. Performance
of the indices does not include sales charges, but includes reinvestment of all
distributions. The S&P MidCap 400 Index consists of 400 domestic stocks chosen
for market size, liquidity and industry group representation. The Lipper Mid-Cap
Value Funds Index represents the performance of the 30 largest mid-cap value
funds. Investors cannot invest directly in an index.
13
CHASE VISTA LARGE CAP EQUITY FUND
As of October 31, 2000 (Unaudited)
HOW THE FUND PERFORMED
Chase Vista Large Cap Equity Fund, which invests in large U.S. value stocks
seeking capital growth, rose 7.34% (class A shares, without sales charge) in the
year ended October 31, 2000. This compares well relative to the 6.08% return
from the S&P 500 Index.
HOW THE FUND WAS MANAGED
Value stocks returned to favor in the latter half of the 12-month period, just
as technology stocks fell from grace. Companies in sectors like financials and
pharmaceuticals were re-rated, generating robust performance at precisely the
time of greatest carnage in the technology sector.
While some financial companies began the year trading on price-to-book value
multiples (a measurement of net asset value) as low as two to three times, some
of the more favored stocks finished the period on multiples as high as seven.
The dismantling in late 1999 of the Depression era Glass-Steagall Act sparked
much of the revaluation. It had kept securities brokerage and commercial banking
businesses separate. The move unleashed a wave of M&A activity as many financial
institutions found it more effective to buy "scale" than to build it. This
allowed the entire sector to be priced at close to its true value.
Financial services companies with high exposure to corporate and investment
banking activities performed well. Fund holdings American International Group,
Citigroup, Morgan Stanley Dean Witter, Merrill Lynch and Bank of New York all
made gains.
In healthcare, valuations rose from less-depressed levels. These companies
prospered as the threat of government intervention to reduce drug prices
appeared to dissipate. The Fund's leading sector performers were Abbott
Laboratories, American Home Products, Eli Lilly and Pharmacia.
Ironically, information technology was the best-performing sector. The manager
reduced the sector weighting throughout the year, capturing gains from the late
1999/early 2000 rally, but minimizing losses when sentiment turned. Oracle Corp,
the software provider, was the top performer in the sector. EMC Corp, Sun
Microsystems and Altera provided strong gains.
The Fund's outperformance of its S&P 500 Index benchmark was generated across
all of the sectors mentioned above.
LOOKING AHEAD
The manager is currently seeking undervalued names from across the market. There
are a number of stocks with solid financial fundamentals that are trading on
reasonable valuations. If stocks continue to be volatile, the Fund will benefit
from its conservative mandate.
14
CHASE VISTA LARGE CAP EQUITY FUND
As of October 31, 2000 (Unaudited)
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENT
[PIE CHART]
Financial 18.3%
Technology 16.7%
Utilities 10.2%
Consumer Cyclicals 10.2%
Health Care 10.1%
Energy 9.8%
Capital Goods 8.9%
Cash Equivalents & Short-Term Paper 8.5%
Consumer Staples 3.8%
Basic Materials 3.5%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. GENERAL ELECTRIC CO. (5.4%) Develops, manufactures and markets products for
the generation, distribution and utilization of electricity. Through General
Electric Capital Services, Inc., offers a variety of financial services
including mutual fund management, financing, asset management and insurance. It
also owns the National Broadcasting Company.
2. AMERICAN INTERNATIONAL GROUP, INC. (5.3%) Writes property, casualty and life
insurance and provides a variety of insurance and insurance-related services
through its subsidiaries in the United States and overseas.
3. CITIGROUP, INC. (4.8%) A diversified financial services holding company that
provides investment banking, retail brokerage, corporate banking and cash
management products and services around the world.
4. EXXON MOBIL CORP. (3.9%) Operates petroleum and petrochemicals business on a
worldwide basis. Operations include exploration and production of oil and gas,
electric power generation and coal and minerals operations.
5. PHARMACIA CORP. (2.9%) Researches, manufactures and sells pharmaceuticals
worldwide. The Company's pharmaceutical segment includes prescription products
for humans and animals, bulk pharmaceuticals and contract manufacturing. Its
agricultural products segment is comprised of agricultural chemicals, seeds and
genomics, as well as animal productivity and nutrition research.
6. ORACLE CORP. (2.5%) Supplies software for enterprise information management.
It offers databases and relational servers, application development and decision
support tools and enterprise business applications.
7. VERIZON COMMUNICATIONS (2.4%) Provides wireline voice and data services,
wireless services, Internet services and published directory information. The
Company also provides network services for the federal government including
business phone lines, data services, telecommunications equipment and payphones.
Verizon has operations worldwide.
8. TEXAS INSTRUMENTS, INC. (2.3%) Provides semiconductor products, as well as
designs and supplies digital signal processing and analog technologies.
9. BANK OF NEW YORK CO., INC. (2.3%) Through its subsidiaries, the Company
provides a complete range of banking and other financial services to
corporations and individuals worldwide. Its services include securities
servicing and cash processing, corporate banking, asset-based lending, private
and retail banking, asset management and financial market services.
10. PFIZER, INC. (2.3%) A research-based, global pharmaceutical company that
discovers, develops, manufactures and markets medicines for humans and animals.
Its products include prescription pharmaceuticals, non-prescription
self-medications and animal health products.
Top 10 equity holdings comprised 34.1% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
15
CHASE VISTA LARGE CAP EQUITY FUND
As of October 31, 2000 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
SINCE
INCEPTION
1 YEAR 5 YEARS (11/30/90)
- ---------------------------------------------------------------------------------
Class A Shares
Without Sales Charge 7.34% 18.36% 16.25%
With Sales Charge 1.16% 16.96% 15.55%
- ---------------------------------------------------------------------------------
Class B Shares
Without CDSC 6.76% 17.89% 16.01%
With CDSC 1.76% 17.68% 16.01%
- ---------------------------------------------------------------------------------
Class C Shares
Without CDSC 6.74% 17.81% 15.97%
With CDSC 5.74% 17.81% 15.97%
- ---------------------------------------------------------------------------------
Class I Shares 7.81% 18.94% 16.53%
- ---------------------------------------------------------------------------------
LIFE OF FUND PERFORMANCE (11/30/90 TO 10/31/00)
[LINE CHART]
Chase Vista Large Lipper Large-Cap
Cap Equity Fund (Class I) S&P 500 Index Value Funds Index
11/90 $10,000 $10,000 $10,000
10/91 $12,496 $12,533 $12,716
10/92 $13,644 $13,779 $13,875
10/93 $15,245 $15,836 $16,529
10/94 $15,908 $16,447 $17,049
10/95 $19,157 $20,788 $20,914
10/96 $24,075 $25,788 $25,481
10/97 $31,661 $34,061 $33,014
10/98 $36,675 $41,555 $37,355
10/99 $42,300 $52,217 $43,669
10/00 $45,604 $55,394 $46,531
Source: Lipper Analytical Services.
Past performance is not indicative of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
Sales charge for Class A Shares: 5.75%. Class B Shares CDSC: 5% for the one-year
period, 2% for the five-year period and 0% for the period since inception. Class
C Shares CDSC: 1% for the one-year period, 0% thereafter.
The Fund commenced operations on 11/30/90. Class A, B and C Shares were
introduced on 5/8/96, 5/7/96 and 11/11/98, respectively. Performance is based on
historical expenses of the predecessor Class I Shares, which are lower than the
expenses for Class A, B and C Shares. The Fund is currently waiving fees. The
waiver may be terminated, which would reduce performance.
Chart illustrates comparative performance of $10,000 (Class I), assumes
reinvestment of all distributions and does not include a sales charge.
Performance of the indices does not include sales charges, but includes
reinvestment of all distributions. The S&P 500 Index is a broad-based index that
replicates the U.S. stock market. The Lipper Large Cap Value Funds Index
represents the performance of the 30 largest large-cap value funds. Investors
cannot invest directly in an index.
16
CHASE VISTA FOCUS FUND
As of October 31, 2000 (Unaudited)
HOW THE FUND PERFORMED
Chase Vista Focus Fund, which seeks capital growth by investing in 25-30 stocks
of medium to large U.S. companies, rose 0.92% (class A shares, without sales
charge) in the year ended October 31, 2000. This compares to the 6.08% return
from its benchmark, the S&P 500 Index.
HOW THE FUND WAS MANAGED
Despite a difficult year, many of the Fund's stock picks still registered strong
performance. While technology stocks staged a tremendous rally in the late
1999/early 2000, their gains turned to losses as the bubble deflated from March
onwards. Even so, the Fund made a small gain for the year.
The dismantling in late 1999 of the Depression era Glass-Steagall Act sparked a
rally in financial services stocks. It had kept securities brokerage and
commercial banking businesses separate. The move unleashed a wave of M&A
activity as many financial institutions found it more effective to buy "scale"
than to build it. This allowed the entire sector to be priced at close to its
true value.
Financial services companies with high exposure to corporate and investment
banking activities performed well. Fund holdings American International Group,
Morgan Stanley Dean Witter, and Merrill Lynch all made strong gains.
In healthcare, too, stocks prospered. The Fund owns a number of biotechnology
companies--which are seen as having robust growth prospects--as well as some
traditional pharmaceuticals companies. Leading biotechnology company Amgen
performed exceptionally well. Specialty pharmaceutical company Watson
Pharmaceuticals also made gains.
Information technology contained both the best and the worst of performers. EMC
Corp, the data storage company, made the greatest single contribution to
performance, and continued to move higher as other technology names fell back.
Trimble Navigation, a software and design company for GPS navigation systems,
received a boost when it sold its hardware manufacturing business.
The manager avoided much of the worst performance in technology. As this is a
relatively small fund, it was able to sell names like Cisco Systems and Intel as
they fell from grace. Additionally, a number of semiconductor names were sold as
they moved lower.
But there were still substantial losses in some stocks. ST Assembly Test
Services, a service company for semi-conductor manufacturers, fell back with
other semi-conductor stocks. Another loser was Starmedia Network, which runs an
internet media company targeting Spanish speaking countries.
Much of the Fund's underperformance of its benchmark came in the second half of
the year, when a number of its high growth holdings came under pressure. It
should be noted, however, that as a fund concentrated on a relatively small
number of stocks, this fund is unlikely to perform particularly closely to the
index.
LOOKING AHEAD
The manager is looking for stocks that will show consistent earnings growth. In
spite of the correction in technology, many of the companies generating higher
growth in future will come from the sector. Additionally, biotechnology remains
an area of interest.
17
CHASE VISTA FOCUS FUND
As of October 31, 2000 (Unaudited)
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
[PIE CHART]
Technology 34.6%
Health Care 22.4%
Financial 19.8%
Capital Goods 12.6%
Consumer Cyclicals 4.2%
Cash Equivalents & Short-Term Paper 4.0%
Energy 2.4%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. EMC CORP. (6.7%) Provides enterprise storage systems, software, networks and
services.
2. MERRILL LYNCH & CO., INC. (6.3%) Provides a variety of financial and
investment services through offices around the world. The Company serves the
needs of both individual and institutional clients with a diverse range of
financial services including personal financial planning, trading and brokering,
banking and lending and insurance.
3. AMERICAN EXPRESS CO. (5.1%) Through its subsidiaries, the Company provides
travel-related, financial advisory and international banking services around
the world. Its products include the American Express Card, the Optima Card and
American Express Travelers Cheques.
4. GENERAL ELECTRIC CO. (5.0%) Develops, manufactures and markets products for
the generation, distribution and utilization of electricity. Through General
Electric Capital Services, Inc., offers a variety of financial services
including mutual fund management, financing, asset management and insurance. It
also owns the National Broadcasting Company.
5. PHARMACIA CORP. (4.8%) Researches, manufactures and sells pharmaceuticals
worldwide. The Company's pharmaceutical segment includes prescription products
for humans and animals, bulk pharmaceuticals and contract manufacturing. Its
agricultural products segment is comprised of agricultural chemicals, seeds and
genomics, as well as animal productivity and nutrition research.
6. TYCO INTERNATIONAL LTD (BERMUDA) (4.8%) Manufactures and installs fire
protection systems and provides electronic security services and manufactures
flow control valves, disposable medical products.
7. AMERICAN INTERNATIONAL GROUP, INC. (4.4%) Writes property, casualty and life
insurance and provides a variety of insurance and insurance-related services
through its subsidiaries in the United States and overseas.
8. BEA SYSTEMS, INC. (4.2%) Provides e-commerce infrastructure software. The
Company, along with its e-commerce transaction platform, provides consulting,
education and support services that help companies launch e-commerce
initiatives. Its systems are used in the commercial and investment banking,
securities trading, telecommunications, airlines, retail and manufacturing
industries.
9. THE WALT DISNEY CO. (4.2%) An entertainment company which conducts operations
in media networks, studio entertainment, theme parks and resorts, consumer
products and Internet and direct marketing. The Company produces motion
pictures, television programs and musical recordings, as well as publishes books
and magazines. It also operates ABC radio and television and theme parks.
10. MARSH & MCLENNAN COMPANIES, INC. (4.2%) A global professional services firm.
It is the parent company of Marsh, a risk and insurance services firm, Putnam
Investments, an investment management company and Mercer Consulting Group, a
global provider of consulting services. The Company provides analysis, advice
and transactional capabilities to clients worldwide.
Top 10 equity holdings comprised 49.7% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
18
CHASE VISTA FOCUS FUND
As of October 31, 2000 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
SINCE
INCEPTION
1 YEAR (6/30/98)
- ---------------------------------------------------------------------------------
Class A Shares
Without Sales Charge 0.92% -0.31%
With Sales Charge -4.89% -2.80%
- ---------------------------------------------------------------------------------
Class B Shares
Without CDSC 0.20% -0.90%
With CDSC -4.80% -2.19%
- ---------------------------------------------------------------------------------
Class C Shares
Without CDSC 0.31% -0.90%
With CDSC -0.69% -0.90%
- ---------------------------------------------------------------------------------
Class I Shares 1.22% -0.02%
- ---------------------------------------------------------------------------------
LIFE OF FUND PERFORMANCE (6/30/98 TO 10/31/00)
[LINE CHART]
Chase Vista Lipper Large-Cap
Focus Fund (Class A) S&P 500 Index Core Funds Index
6/98 $9,425 $10,000 $10,000
10/98 $8,858 $9,738 $9,517
10/99 $9,273 $12,237 $11,746
10/00 $9,358 $12,981 $12,877
Source: Lipper Analytical Services.
Past performance is not indicative of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
Sales charge for Class A Shares: 5.75%. Class B Shares CDSC: 5% for the one-year
period, 3% for the period since inception. Class C Shares CDSC: 1% for the
one-year period. 0% thereafter.
The Fund commenced operations on 6/30/98. All Share Classes were introduced on
6/30/98.
The Fund is currently waiving fees. The waiver may be terminated, which would
reduce performance.
Chart illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 5.75% sales charge. Performance
of the indices does not include sales charges, but includes reinvestment of all
distributions. The S&P 500 Index is a broad-based index that replicates the U.S.
stock market. The Lipper Large-Cap Core Funds Index represents the performance
of the 30 largest funds that invest in both growth and value stocks. Investors
can not invest directly in an index.
19
CHASE VISTA EQUITY INCOME FUND
As of October 31, 2000 (Unaudited)
HOW THE FUND PERFORMED
Chase Vista Equity Income Fund, which invests in the income-oriented stocks of
large U.S. companies seeking capital growth and a yield higher than the S&P 500
Index, rose 5.95% (class A shares, without sales charge) in the year ended
October 31, 2000. This compares with 6.08% for the S&P 500 Index.
HOW THE FUND WAS MANAGED
Regulation proved the dominant theme for this Fund in the 12-month period. In
sectors like financials and utilities, the deregulation of the past few years
proved a positive force and boosted stock prices. In telecommunications,
however, the increased competition unleashed by deregulation damaged the stocks
of long distance companies.
Financial stocks proved particularly strong contributors to performance,
following the dismantling in late 1999 of the Depression era Glass-Steagall Act
that had separated securities broking and commercial banking businesses. The
move unleashed a wave of M&A activity as financial institutions sought to buy
"scale". This caused many stocks to be re-rated. Names like American
International Group, Morgan Stanley Dean Witter and Citigroup performed well for
the Fund.
Two of the more aggressive utilities companies--Duke Power and Enron--also moved
higher. These companies have diversified enthusiastically into growth areas of
the utilities industry since deregulation. Enron has been particularly
successful, not only in power generation, but also in businesses such as
broadband telecommunications.
Conversely, deregulation has led stock market investors to view long-distance
telecommunications as a commodity-type business where prices will come under
continuous pressure. Stock prices of a couple of holdings--Worldcom and
AT&T--fell by more than 50% during the year, as they fell from premium prices
to a discount. These stocks made the greatest contribution to the Fund's
underperformance of its S&P 500 Index benchmark.
Healthcare stocks recovered from low levels, as threatened regulation to reduce
prescription drug prices did not materialize. Abbott Laboratories, Eli Lilly,
Pfizer and Pharmacia made strong gains.
Elsewhere, performance was varied. Software stock Oracle was the best performer.
Basic materials names like International Paper and DuPont were poor players.
LOOKING AHEAD
Investors' attention is shifting from technology stocks to those companies that
may benefit from technology. Many companies that will reap considerable
productivity rewards from investments in new systems and other technology
applications are trading at reasonable valuations.
20
CHASE VISTA EQUITY INCOME FUND
As of October 31, 2000 (Unaudited)
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
[PIE CHART]
Technology 19.8%
Financial 17.3%
Utilities 14.9%
Health Care 13.9%
Consumer Cyclicals 8.4%
Capital Goods 8.1%
Consumer Staples 6.2%
Energy 6.1%
Cash Equivalents & Short-Term Paper 3.0%
Basic Materials 2.3%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. GENERAL ELECTRIC CO. (4.4%) Develops, manufactures and markets products for
the generation, distribution and utilization of electricity. Through General
Electric Capital Services, Inc., offers a variety of financial services
including mutual fund management, financing, asset management and insurance. It
also owns the National Broadcasting Company.
2. AMERICAN INTERNATIONAL GROUP, INC. (3.9%) Writes property, casualty and life
insurance and provides a variety of insurance and insurance-related services
through its subsidiaries in the United States and overseas.
3. CITIGROUP, INC. (3.5%) A diversified financial services holding company that
provides investment banking, retail brokerage, corporate banking and cash
management products and services around the world.
4. INTEL CORP. (3.4%) Designs, manufactures and sells computer components and
related products. Major products include microprocessors, chipsets, embedded
processors and microcontrollers, flash memory products, graphics products,
network and communications products, system management software, conferencing
products and digital imaging products.
5. SBC COMMUNICATIONS, INC. (3.2%) Provides communications services in the
United States and in other countries. The Company provides local and
long-distance phone service, wireless and data communications, paging,
Internet access and messaging, cable and satellite television, security
services and telecommunications equipment.
6. INTERNATIONAL BUSINESS MACHINES CORP. (3.2%) Provides technologies, systems,
products, services, software and financing. The Company offers products through
its global sales and distribution organization, as well as through a variety of
third party distributors and resellers.
7. VERIZON COMMUNICATIONS (2.8%) Provides wireline voice and data services,
wireless services, Internet services and published directory information. The
Company also provides network services for the federal government including
business phone lines, data services, telecommunications equipment and payphones.
Verizon has operations worldwide.
8. MICROSOFT CORP. (2.7%) Develops, manufactures, licenses, sells and supports
software products.
9. ORACLE CORP. (2.7%) Supplies software for enterprise information management.
It offers databases and relational servers, application development and decision
support tools and enterprise business applications.
10. TEXAS INSTRUMENTS, INC. (2.6%) Provides semiconductor products, as well as
designs and supplies digital signal processing and analog technologies.
Top 10 equity holdings comprised 32.4% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
21
CHASE VISTA EQUITY INCOME FUND
As of October 31, 2000 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
SINCE
INCEPTION
1 YEAR 5 YEARS (7/15/93)
- ---------------------------------------------------------------------------------
Class A Shares
Without Sales Charge 5.95% 17.07% 14.64%
With Sales Charge -0.12% 15.69% 13.72%
- ---------------------------------------------------------------------------------
Class B Shares
Without CDSC 5.43% 16.48% 14.25%
With CDSC 0.74% 16.27% 14.25%
- ---------------------------------------------------------------------------------
Class C Shares
Without CDSC 5.38% 16.49% 14.26%
With CDSC 4.44% 16.49% 14.26%
- ---------------------------------------------------------------------------------
LIFE OF FUND PERFORMANCE (7/15/93 TO 10/31/00)
[LINE CHART]
Chase Vista Lipper Equity
Equity Income Fund (Class A) S&P 500 Index Income Funds Index
7/93 $9,425 $10,000 $10,000
10/93 $9,983 $10,470 $10,558
10/94 $9,847 $10,874 $10,786
10/95 $11,616 $13,744 $12,721
10/96 $15,077 $17,051 $15,260
10/97 $20,149 $22,520 $19,283
10/98 $21,542 $27,476 $21,312
10/99 $24,112 $34,525 $23,578
10/00 $25,549 $36,626 $25,174
Source: Lipper Analytical Services.
Past performance is not indicative of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
Sales charge for Class A Shares: 5.75%. Class B Shares CDSC: 5% for the one-year
period, 2% for the five-year period and 0% for the period since inception. Class
C Shares CDSC: 1% for the one-year period, 0% thereafter.
The Fund commenced operations on 7/15/93. Class B and C Shares were introduced
on 5/7/96 and 1/8/98, respectively. Performance is based on historical expenses
of the predecessor Class A Shares, which are lower than the expenses for Class B
and C Shares.
The Fund is currently waiving fees. The waiver may be terminated, which would
reduce performance.
Chart illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 5.75% sales charge. Performance
of the indices does not include sales charges, but includes reinvestment of all
distributions. The performance of the indices reflect an initial investment at
the end of the month preceding the Fund's commencement of operations. The S&P
500 Index is a broad-based index that replicates the U.S. stock market. The
Lipper Equity Income Funds Index represents the performance of the 30 largest
funds that invest in dividend-paying equity securities. Investors cannot invest
directly in an index.
22
CHASE VISTA SMALL CAP OPPORTUNITIES FUND
As of October 31, 2000 (Unaudited)
HOW THE FUND PERFORMED
Chase Vista Small Cap Opportunities Fund, which seeks to provide capital growth
by investing in small cap growth stocks, had a total return of 53.57% (Class A
shares, without sales charge) in the year ended October 31, 2000. This compares
with a lesser return of 28.84% for the S&P Small Cap 600/BARRA Growth Index.
HOW THE FUND WAS MANAGED
All of the Fund's returns were achieved in the extraordinary technology stock
rally of late 1999/early 2000. As the speculative activity reached extremes, and
technology stock valuations defied rational explanation, many of the Fund's
holdings made strong gains. During the months of November, December, January and
February, the Fund rose more than 60%, and touched its high for the year.
In March, however, the speculative bubble burst and technology stocks
subsequently gave back much of their gains. They continued to fall through the
spring and summer, as investors realized technology valuations were
overstretched, as well as reacted to more general worries surrounding whether
the Federal Reserve Board's six successive rate rises had slowed economic
growth. During the year, IPOs represented, on average, approximately 6% of the
Fund's portfolio, and contributed approximately 8% of the Fund's full-year
returns.
The Fund's manager locked in gains made in the first quarter rally by reducing
technology holdings in the spring. Some highly valued technology names were
either partially or completely sold, including companies like Atmel, PMC Sierra
and Tibco Software. As many of these stocks corrected sharply in the following
months, this generated much of the Fund's outperformance.
Small caps generally benefited during the 12 months from buoyant earnings
growth. When small caps reported profits for the first quarter of 2000, their
earnings growth exceeded that of large companies for the first time since the
mid-1990s. Superior earnings growth continued throughout the year and
underpinned a strong performance by many stocks.
Among the Fund's leading performers were Celgene, Province Healthcare and
Investors Financial Services. Tibco Software was also a strong contributor, as
its value was multiplied by more than three times, even after it was sold
halfway through the year.
LOOKING AHEAD
Earnings growth should continue to be the motor of performance. Small-cap
earnings are forecast to grow twice as fast as those of large-cap companies, and
yet small caps continue to trade on lower valuations. This may lead to a
long-term trend of outstanding small cap performance. Further, a more favorable
interest rate environment will be good for small caps.
IPO AND EMERGING COMPANY SHARES INVOLVE A HIGHER DEGREE OF RISK NOT NORMALLY
ASSOCIATED WITH OFFERINGS OF MORE SEASONED COMPANIES. THE NUMBER OF QUALITY IPOS
AVAILABLE FOR THE FUND TO PURCHASE MAY BE INADEQUATE FOR EXTENDED PERIODS OF
TIME.
23
CHASE VISTA SMALL CAP OPPORTUNITIES FUND
As of October 31, 2000 (Unaudited)
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
[PIE CHART]
Health Care 26.6%
Technology 25.5%
Consumer Cyclicals 20.0%
Financial 7.1%
Cash Equivalents & Short Term Paper 6.2%
Energy 4.7%
Utilities 2.8%
Capital Goods 2.1%
Basic Materials 2.0%
Transportation 2.0%
Consumer Staples 0.8%
Real Estate 0.2%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. PERKINELMER, INC. (2.5%) Provides products and systems to the medical,
pharmaceutical, telecommunications, semiconductor and photographic markets
located worldwide. Its products include seals and bellows, hardware and
software, opto-electronics and bioanalytic and diagnostic instrument systems.
2. PROVINCE HEALTHCARE CO. (2.5%) Provides health care services in non-urban
markets in the United States. It owns or leases acute care hospitals in several
states.
3. CELGENE CORP. (2.2%) Develops and commercializes human pharmaceuticals and
agro-chemicals. The Company employs small molecule immunotherapeutic compound
development and biocatalytic chiral chemistry technology platforms.
4. AVOCENT CORP. (2.1%) Supplies connectivity solutions for enterprise data
centers, service providers and financial institutions worldwide.
5. CAREER EDUCATION CORP. (2.0%) Provides private, for-profit postsecondary
education in the United States and Canada. The Company's schools offer a variety
of bachelor's degree, associate degree and non-degree programs, with a core
curricula of information technologies, visual communication and design
technologies, business studies and culinary arts.
6. TECHNITROL, INC. (1.7%) Manufactures electronic and metallurgical components.
The Company provides a variety of magnetics-based components, miniature chip
inductors and modules. It also provides electrical contacts and assemblies,
contact materials, thermostatic bimetals, clad metal products and precision
contact subassemblies.
7. BJ'S WHOLESALE CLUB, INC. (1.6%) Is a merchandise wholesale club chain. The
Company sells brand name food and general merchandise at discounted prices
through clubs in the eastern United States.
8. COR THERAPEUTICS, INC. (1.6%) Discovers, develops and commercializes
pharmaceutical products for the treatment and prevention of severe
cardiovascular diseases. The Company currently has research and development
programs that seek to address the critical needs in unstable angina, acute
myocardial infarction, deep vein thrombosis and restenosis.
9. K-V PHARMACEUTICAL CO. (1.6%) Researches, develops, manufactures and markets
controlled-release and tastemasked forms of drug products using proprietary drug
delivery and tastemasking technologies.
10. IRON MOUNTAIN, INC. (1.5%) Provides records and information management
services to customers in the United States, Canada, Europe, Mexico and South
America. The Company's operations include business records management, data
security services and healthcare information management services.
Top 10 equity holdings comprised 19.3% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
24
CHASE VISTA SMALL CAP OPPORTUNITIES FUND
As of October 31, 2000 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
SINCE
INCEPTION
1 YEAR (5/19/97)
- ---------------------------------------------------------------------------------
Class A Shares
Without Sales Charge 53.57% 29.70%
With Sales Charge 44.78% 27.49%
- ---------------------------------------------------------------------------------
Class B Shares
Without CDSC 52.51% 28.80%
With CDSC 47.51% 28.34%
- ---------------------------------------------------------------------------------
Class C Shares
Without CDSC 52.52% 28.76%
With CDSC 51.52% 28.76%
- ---------------------------------------------------------------------------------
Class I Shares 54.26% 29.87%
- ---------------------------------------------------------------------------------
LIFE OF FUND PERFORMANCE (5/19/97 TO 10/31/00)
[LINE CHART]
Chase Vista Small S&P SmallCap 600/ Lipper Small-Cap
Cap Opportunities Fund (Class A) BARRA Growth Index Growth Funds Index
4/97 $9,425 $10,000 $10,000
10/97 $13,054 $12,978 $13,293
10/98 $12,055 $11,332 $10,879
10/99 $15,065 $14,273 $15,416
10/00 $23,129 $18,393 $21,379
Source: Lipper Analytical Services. Past performance is not indicative of future
results. Investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Sales charge for Class A Shares: 5.75%. Class B Shares CDSC: 5% for the one-year
period and 3% for the period since inception. Class C Shares CDSC: 1% for the
one-year period and 0% for the period since inception.
The Fund commenced operations on 5/19/97. Class A and B Shares were introduced
on 5/19/97. Class C and I Shares were introduced on 1/7/98 and 4/5/99,
respectively. Performance is based on historical expenses of the predecessor
Class A Shares, which are lower than the expenses for Class B and C Shares and
higher than Class I Shares.
The Fund is currently waiving fees. The waiver may be terminated, which would
reduce performance.
Chart illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 5.75% sales charge. Performance
of the indices does not include sales charges, but includes reinvestment of all
distributions. The performance of the indices reflect an initial investment at
the end of the month preceding the Fund's commencement of operations. The S&P
SmallCap 600/BARRA Growth Index is a capitalization-weighted index of all the
stocks in the S&P SmallCap 600 Index with high price-to-book ratios. The Lipper
Small Cap Growth Funds Index represents the performance of the 30 largest funds
that invest in small capitalization stocks. Small company stocks involve more
price volatility, which can lead to a higher degree of risk. Investors cannot
invest directly in an index.
25
CHASE VISTA SMALL CAP EQUITY FUND
As of October 31, 2000 (Unaudited)
HOW THE FUND PERFORMED
Chase Vista Small Cap Equity Fund, which seeks to provide capital growth by
investing in small-cap common stocks, had a total return of 37.10% (Class A
shares, without sales charge) in the year ended October 31, 2000. This strongly
outperforms the S&P SmallCap 600 Index's return of 25.26%.
HOW THE FUND WAS MANAGED
Small-cap equities staged a "stealth" bull market during the 12-month period as
their earnings growth quietly overtook that of larger companies. During the
first quarter of 2000, small stock earnings growth was greater than that of
large companies for the first time since the mid-1990s. Small stock earnings
continued to grow faster for the remainder of the year. This was reflected in
small-cap stock prices, which demonstrated a strong performance both in absolute
terms, and relative to large caps.
Most of the gains were generated during the rally that took place at the end of
1999 and beginning of 2000. For much of the rest of the year, stocks remained in
a trading range, and the Fund only touched new highs in August/September. Market
participants worried about how far the Federal Reserve Board would have to raise
interest rates in order to slow the runaway U.S. economy. Additionally,
technology stocks fell back from inflated valuations.
The manager's decision to cut back technology holdings in the spring proved
timely. Following strong performance, many stocks were trading on extended
valuations, and names such as Atmel and JDS Uniphase were sold. A number of the
stocks that were sold subsequently experienced sharp corrections.
Healthcare stocks performed well. King Pharmaceuticals, IDEC Pharmaceuticals,
Province Healthcare, Inhales Therapeutic Systems and KV Pharmaceuticals all made
gains. Elsewhere, Investor Financial Services and Avocent, a computer
peripherals company, did well. Many of these leading performers reported buoyant
earnings.
LOOKING AHEAD
Earnings growth should continue to be the motor of outperformance for small
caps. Small-cap earnings are forecast to grow twice as fast as those of
large-cap companies, and yet small caps continue to trade on significantly lower
valuations. This should lead to a long-term trend of consistent superior
small-cap performance. Further, following six interest-rate rises in a row, the
probability is that that next move will be down. A more favorable interest rate
environment will be good for small caps.
26
CHASE VISTA SMALLCAP EQUITY FUND
As of October 31, 2000 (Unaudited)
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
[PIE CHART]
Technology 22.5%
Health Care 20.3%
Consumer Cyclicals 17.9%
Financial 13.6%
Energy 5.6%
Cash Equivalents & Short Term Paper 5.5%
Utilities 5.4%
Capital Goods 3.9%
Basic Materials 1.6%
Transportation 1.4%
Consumer Staples 1.2%
Real Estate 1.1%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. PROVINCE HEALTHCARE CO. (3.1%) Provides health care services in non-urban
markets in the United States. It owns or leases acute care hospitals in several
states. Province also provides management services to primarily non-urban
hospitals in the United States and Puerto Rico.
2. PERKINELMER, INC. (3.0%) Provides products and systems to the medical,
pharmaceutical, telecommunications, semiconductor and photographic markets
located worldwide. Its products include seals and bellows, hardware and
software, opto-electronics and bioanalytic and diagnostic instrument systems.
3. AVOCENT CORP. (2.6%) Supplies connectivity solutions for enterprise data
centers, service providers and financial institutions worldwide.
4. INVESTORS FINANCIAL SERVICES CORP. (2.3%) Provides asset administration
services for the financial services industry through its wholly owned
subsidiaries. The Company provides global custody, multicurrency accounting,
institutional transfer agency, performance measurement, foreign exchange,
securities lending and mutual fund services.
5. CATALINA MARKETING CORP. (1.8%) Provides a network of marketing programs to
consumer goods companies. The Company's network provides purchase-based,
individually customized communications and promotions that reach shoppers every
week in installed supermarkets.
6. ADVANCE PARADIGM, INC. (1.8%) Provides health benefit management services.
The Company provides integrated pharmacy benefit management services, including
clinical programs, mail service, retail network management and claims
adjudication.
7. IDEC PHARMACEUTICALS CORP. (1.7%) A biopharmaceutical company that
researches, develops and commercializes targeted therapies for the treatment of
cancer and autoimmune and inflammatory diseases. The Company's Rtruxan product
treats certain B-cell NHLs.
8. FEDERATED INVESTORS, INC. (1.7%) Through its subsidiaries, the Company
manages or administers mutual funds and separate accounts. The Company's equity,
international/global, bond and money market products are invested in by
financial professionals nationwide on behalf of individual and institutional
investors.
9. PUBLIC SERVICE CO. OF NEW MEXICO (1.6%) Generates, transmits, distributes and
sells electricity. The Company provides retail electric service to customers in
New Mexico. It also transmits, distributes and sells natural gas within New
Mexico. The Company's activities also include energy management services and
management services for water and wastewater systems.
10. BJ'S WHOLESALE CLUB, INC. (1.6%) Is a merchandise wholesale club chain. The
Company sells brand name food and general merchandise at discounted prices
through clubs in the eastern United States.
Top 10 equity holdings comprised 21.2% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
27
CHASE VISTA SMALLCAP EQUITY FUND
As of October 31, 2000 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
SINCE
INCEPTION
1 YEAR 5 YEARS (12/20/94)
- ---------------------------------------------------------------------------------
Class A Shares
Without Sales Charge 37.10% 17.18% 22.84%
With Sales Charge 29.21% 15.80% 21.60%
- ---------------------------------------------------------------------------------
Class B Shares
Without CDSC 36.17% 16.35% 22.00%
With CDSC 31.17% 16.13% 21.93%
- ---------------------------------------------------------------------------------
Class I Shares 37.94% 17.65% 23.26%
- ---------------------------------------------------------------------------------
LIFE OF FUND PERFORMANCE (12/20/94 TO 10/31/00)
[LINE CHART]
Chase Vista S&P SmallCap Lipper Small-Cap
Small Cap Equity Fund (Class A) 600 Index Growth Funds Index
11/94 $9,425 $10,000 $10,000
10/95 $14,256 $12,597 $13,105
10/96 $18,398 $15,175 $15,842
10/97 $22,924 $20,026 $18,798
10/98 $20,418 $17,812 $15,385
10/99 $22,973 $19,956 $21,801
10/00 $31,496 $25,007 $29,971
Source: Lipper Analytical Services. Past performance is not indicative of future
results. Investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Sales charge for Class A Shares: 5.75%. Class B Shares CDSC: 5% for the one-year
period, 2% for the five-year period and 1% for the period since inception.
The Fund commenced operations on 12/20/94. Class B and I Shares were introduced
on 3/28/95 and 5/7/96, respectively. Performance is based on historical expenses
of the predecessor Class A Shares, which are lower than the expenses for Class B
and higher than Class I Shares.
The Fund is currently waiving fees. The waiver may be terminated, which would
reduce performance.
Chart illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 5.75% sales charge. Performance
of the indices does not include sales charges, but includes reinvestment of all
distributions. The performance of the indices reflect an initial investment at
the end of the month preceeding the Fund's commencement of operations. The S&P
SmallCap 600 Index includes 600 stocks of small U.S. companies chosen for market
size, liquidity and industry group representation. The Lipper Small Cap Growth
Funds Index represents the performance of the 30 largest funds that invest in
small capitalization stocks. Small company stocks involve more price volatility,
which can lead to a higher degree of risk. Investors cannot invest directly in
an index.
28
CHASE VISTA BALANCED FUND
As of October 31, 2000 (Unaudited)
HOW THE FUND PERFORMED
Chase Vista Balanced Fund, which invests in a blend of large U.S. stocks and
bonds, and seeks relatively stable returns, rose 4.41% (class A shares, without
sales charge) in the year ended October 31, 2000. This compares with the 6.08%
return of the S&P 500 Index.
HOW THE FUND WAS MANAGED
Extraordinary volatility in technology stocks buffeted the Fund during the year.
A common belief that technology and the Internet would transform the world
economy drove an enormous rally at the end of 1999/beginning 2000. But in the
early spring, dot-coms started reduce their staff and technology stocks started
to fall. After reaching a peak in March, the Fund fell back with the technology
stocks that form almost a third of its benchmark S&P 500 index.
Much of the Fund's underperformance of the S&P 500 Index can be attributed to
this period, when a number of its growth stock holdings came under pressure. The
speculative extremes reached can be seen in stock valuations. Cisco Systems, for
example, the world's largest network equipment company, carried a valuation that
was more than the entire S&P 600 small cap index. Even given the brightest of
prospects, this could not be justified. Additionally, due to the Fund's
longer-term focus, core holdings such as Microsoft and Wal-Mart, with proven
track records and meaningful growth prospects, were retained. Despite their
short-term underperformance, stocks such as these should help drive the market
higher during extended rallies in the future.
Stock picks from a variety of sectors were solid. Technology names like EMC
Corp, the data storage provider, and Sanmina Corp, which offers outsourced
manufacturing to technology groups, performed well. Utilities companies Enron
Corp and AES Corp made gains. Elsewhere, Southwest Airlines, Walgreen Co and
America International Group were buoyant.
Treasury bonds had a rally that was driven by sound fundamentals. Following
three Federal Reserve Board rate rises in the 12 months-in February, March and
May-evidence emerged late summer that the U.S. economy was indeed slowing from
its unsustainably high growth rate. This fuelled a rally, particularly in
longer-dated maturities. Weak spots were corporate and mortgage bonds, where
credit concerns undermined prices.
LOOKING AHEAD
The manager is analyzing where future equity outperformance may come from,
employing a combination of technical and fundamental analysis. Areas of interest
include a number of regional phone companies and wireless phone providers.
Additionally, selecting the right technology stocks will have a major impact on
performance. U.S. Treasury bonds are likely to remain in a narrow trading range
as CPI year-on-year inflation declines to a level of roughly 2.75%.
29
CHASE VISTA BALANCED FUND
As of October 31, 2000 (Unaudited)
PERCENTAGE OF TOTAL PORTFOLIO INVESTMENTS
[PIE CHART]
Technology 17.0%
Financial 13.3%
Cash Equivalents & Short Term Paper 12.4%
Mortgage Backed Pass-Through Securities 12.4%
Consumer Cyclicals 11.6%
Health Care 6.8%
Utilities 6.6%
Capital Goods 5.9%
U.S. Treasury Securities 4.7%
Energy 3.9%
Consumer Staples 2.2%
U.S. Government Agency Securities 1.9%
Transportation 0.9%
Basic Materials 0.4%
TOP TEN EQUITY HOLDINGS OF THE PORTFOLIO
1. GENERAL ELECTRIC CO. (2.7%) Develops, manufactures and markets products for
the generation, distribution and utilization of electricity. Through General
Electric Capital Services, Inc., offers a variety of financial services
including mutual fund management, financing, asset management and insurance. It
also owns the National Broadcasting Company.
2. AMERICAN INTERNATIONAL GROUP, INC. (2.1%) Writes property, casualty and life
insurance and provides a variety of insurance and insurance-related services
through its subsidiaries in the United States and overseas.
3. EXXON MOBIL CORP. (2.0%) Operates petroleum and petrochemicals business on a
worldwide basis. Operations include exploration and production of oil and gas,
electric power generation and coal and minerals operations.
4. MICROSOFT CORP. (1.6%) Develops, manufactures, licenses, sells and supports
software products.
5. CISCO SYSTEMS, INC. (1.6%) Supplies data networking products to the corporate
enterprise and public wide area service provider markets. Products include
routers, LAN switches, frame relay/ATM and remote access concentrators.
6. AMERICAN EXPRESS CO. (1.6%) Through its subsidiaries, the Company provides
travel-related, financial advisory and international banking services around the
world. Its products include the American Express Card, the Optima Card and
American Express Travelers Cheques.
7. CITIGROUP, INC. (1.5%) A diversified financial services holding company that
provides investment banking, retail brokerage, corporate banking and cash
management products and services around the world.
8. PFIZER, INC. (1.5%) A research-based, global pharmaceutical company that
discovers, develops, manufactures and markets medicines for humans and animals.
Its products include prescription pharmaceuticals, non-prescription self-
medications and animal health products.
9. INTEL CORP. (1.4%) Designs, manufactures and sells computer components and
related products. Major products include microprocessors, chipsets, embedded
processors and microcontrollers, flash memory products, graphics products,
network and communications products, system management software, conferencing
products and digital imaging products.
10. WAL-MART STORES, INC. (1.3%) Operates discount stores and Supercenters as
well as Sam's Clubs which offer merchandise such as apparel, housewares, small
appliances, electronics and hardware.
Top 10 equity holdings comprised 17.3% of the Portfolio's market value of
investments. Portfolio holdings are subject to change at any time.
30
CHASE VISTA BALANCED FUND
As of October 31, 2000 (Unaudited)
AVERAGE ANNUAL TOTAL RETURNS
SINCE
INCEPTION
1 YEAR 5 YEARS (11/2/92)
- ---------------------------------------------------------------------------------
Class A Shares
Without Sales Charge 4.41% 12.66% 12.45%
With Sales Charge -1.59% 11.34% 11.62%
- ---------------------------------------------------------------------------------
Class B Shares
Without CDSC 3.70% 11.87% 11.74%
With CDSC -1.02% 11.61% 11.74%
- ---------------------------------------------------------------------------------
Class C Shares
Without CDSC 3.69% 11.85% 11.72%
With CDSC 2.75% 11.85% 11.72%
- ---------------------------------------------------------------------------------
LIFE OF FUND PERFORMANCE (11/2/92 TO 10/31/00)
Chase Vista Lipper Balanced Lehman Government/
Balanced Fund (Class A) S&P 500 Index Funds Index Credit Index
10/92 $9,425 $10,000 $10,000 $10,000
10/93 $11,097 $11,493 $11,607 $11,366
10/94 $11,269 $11,936 $11,537 $10,839
10/95 $13,264 $15,086 $13,565 $12,591
10/96 $15,503 $18,716 $15,533 $13,268
10/97 $18,837 $24,719 $18,680 $14,436
10/98 $20,646 $30,158 $20,690 $15,919
10/99 $23,063 $37,896 $23,291 $15,815
10/00 $24,079 $40,202 $25,132 $16,942
Source: Lipper Analytical Services. Past performance is not indicative of future
results. Investment return and principal value will fluctuate so that shares,
when redeemed, may be worth more or less than their original cost.
Sales charge for Class A Shares: 5.75%. Class B Shares CDSC: 5% for the one-year
period, 2% for the five-year period and 0% for the period since inception. Class
C Shares CDSC: 1% for the one-year period, 0% thereafter.
The Fund commenced operations on 11/2/92. Class B and C Shares were introduced
on 11/4/93 and 11/20/98, respectively. Performance is based on historical
expenses of the predecessor Class A Shares, which are lower than the expenses
for Class B and C Shares. The Fund is currently waiving fees. The waiver may be
terminated, which would reduce performance.
Chart illustrates comparative performance of $10,000 (Class A), assumes
reinvestment of all distributions and includes a 5.75% sales charge. Performance
of the indices does not include sales charges, but includes reinvestment of all
distributions. The S&P 500 Index is a broad-based index that replicates the U.S.
stock market. The Lipper Balanced Funds Index represents the performance of the
30 largest balanced funds. The Lehman Gov't./Credit Index includes the
government and corporate bond indices, including U.S. government and Treasury
agency securities, corporate and Yankee bonds. Investors cannot invest directly
in an index.
31
CHASE VISTA LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- 93.2%
- -------------------------------------------------------------------------------------
Common Stock -- 93.2%
--------------------
Automotive -- 2.7%
145 Ford Motor Co. $ 3,792
32 General Motors Corp. 2,000
-----------
5,792
Banking -- 3.8%
86 Bank of New York Co., Inc. 4,941
69 Wells Fargo Co. 3,172
-----------
8,113
Chemicals-- 1.6%
33 Dow Chemical Co. 1,020
53 E.I. DuPont de Nemours Co. 2,400
-----------
3,420
Computer Networks -- 1.9%
77 Cisco Systems, Inc. * 4,148
Computer Software -- 2.5%
162 Oracle Corp. * 5,346
Computers/Computer Hardware -- 8.2%
77 Compaq Computer Corp. 2,342
46 EMC Corp. * 4,096
56 Hewlett-Packard Co. 2,601
44 International Business Machines Corp. 4,363
36 Sun Microsystems, Inc. * 3,992
-----------
17,394
Consumer Products -- 1.5%
47 Gillette Co. 1,653
42 Philip Morris Companies, Inc. 1,520
-----------
3,173
Diversified -- 5.5%
214 General Electric Co. 11,725
Financial Services -- 9.5%
67 American Express Co. 3,996
197 Citigroup, Inc. 10,366
21 Fannie Mae 1,594
38 Morgan Stanley Dean Witter & Co. 3,052
9 State Street Corp. 1,173
-----------
20,181
Food/Beverage Products -- 3.9%
47 Anheuser-Busch Companies, Inc. 2,150
42 Coca-Cola Co. 2,554
40 PepsiCo, Inc. 1,938
33 Sysco Corp. 1,722
-----------
8,364
Insurance -- 5.4%
118 American International Group, Inc. 11,554
Machinery & Engineering Equipment -- 1.7%
60 Caterpillar, Inc. 2,104
36 Dover Corp. 1,528
-----------
3,632
See notes to financial statements.
32
CHASE VISTA LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Manufacturing -- 1.2%
48 Honeywell International, Inc. $ 2,583
Metals/Mining -- 0.5%
40 Alcoa, Inc. 1,159
Multi-Media -- 3.1%
49 The Walt Disney Co. 1,755
29 Time Warner, Inc. 2,201
48 Viacom, Inc., Class B * 2,751
-----------
6,707
Office/Business Equipment -- 0.6%
145 Xerox Corp. 1,223
Oil & Gas -- 10.0%
24 BP Amoco PLC, ADR (United Kingdom) 1,223
42 Chevron Corp. 3,457
95 Exxon Mobil Corp. 8,509
42 Halliburton Co. 1,538
76 Royal Dutch Petroleum Co., N.Y. Registered Shares
(Netherlands) 4,501
28 Schlumberger LTD 2,132
-----------
21,360
Paper/Forest Products -- 1.4%
35 International Paper Co. 1,286
37 Weyerhaeuser Co. 1,736
-----------
3,022
Pharmaceuticals -- 10.5%
82 Abbott Laboratories 4,331
55 American Home Products Corp. 3,493
35 Eli Lilly & Co. 3,128
114 Pfizer, Inc. 4,923
115 Pharmacia Corp. 6,337
-----------
22,212
Retailing -- 2.9%
4 Kohls Corp. * 217
86 Target Corp. 2,376
81 Wal-Mart Stores, Inc. 3,675
-----------
6,268
Semi-Conductors -- 3.4%
50 Intel Corp. 2,250
102 Texas Instruments, Inc. 5,004
-----------
7,254
Telecommunications -- 6.1%
70 AT&T Corp. 1,621
55 BellSouth Corp. 2,657
61 SBC Communications, Inc. 3,519
90 Verizon Communications 5,192
-----------
12,989
Telecommunications Equipment -- 1.0%
87 Motorola, Inc. 2,158
See notes to financial statements.
33
CHASE VISTA LARGE CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Utilities -- 4.3%
20 Dominion Resources, Inc. $ 1,209
41 DQE, Inc. 1,432
28 Duke Energy Corp. 2,420
50 Enron Corp. 4,104
-----------
9,165
- -------------------------------------------------------------------------------------
Total Long-Term Investments 198,942
(Cost $153,303)
- -------------------------------------------------------------------------------------
Short-Term Investment -- 8.7%
- -------------------------------------------------------------------------------------
Principal
Amount
Repurchase Agreement -- 8.7%
----------------------------
$18,577 Greenwich Capital Markets, Inc., Tri Party, 6.55%,
due 11/01/00, (Dated 10/31/00, Proceeds $18,580,
Secured by GNMA, $18,518, 8.00%, due 09/15/30
through 10/15/30; Market Value $18,953) 18,577
(Cost $18,577)
- -------------------------------------------------------------------------------------
Total Investments -- 101.9% $217,519
(Cost $171,880)
- -------------------------------------------------------------------------------------
See notes to financial statements.
34
CHASE VISTA FOCUS FUND
PORTFOLIO OF INVESTMENTS
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- 96.3%
- -------------------------------------------------------------------------------------
Common Stock -- 96.3%
--------------------
Biotechnology -- 3.4%
33 Amgen, Inc. * $ 1,892
Computer Software -- 6.7%
24 Adobe Systems, Inc. 1,821
8 Mercury Interactive Corp. * 913
30 Oracle Corp. * 992
-----------
3,726
Computers/Computer Hardware -- 6.8%
42 EMC Corp. * 3,767
Diversified -- 9.8%
51 General Electric Co. 2,804
47 Tyco International LTD (Bermuda) 2,660
-----------
5,464
Financial Services -- 11.4%
47 American Express Co. 2,838
50 Merrill Lynch & Co., Inc. 3,514
-----------
6,352
Industrial Components -- 2.8%
13 SPX Corp. * 1,589
Insurance -- 8.6%
25 American International Group, Inc. 2,441
18 Marsh & McLennan Companies, Inc. 2,340
-----------
4,781
Internet Services/Software -- 4.2%
33 BEA Systems, Inc. * 2,366
Multi-Media -- 4.2%
66 The Walt Disney Co. 2,353
Oil & Gas -- 2.4%
25 Transocean Sedco Forex, Inc. 1,330
Pharmaceuticals -- 18.9%
22 Alza Corp. * 1,773
10 IDEC Pharmaceuticals Corp. * 2,040
28 Medimmune, Inc. * 1,837
49 Pharmacia Corp. 2,687
36 Watson Pharmaceuticals, Inc. * 2,239
-----------
10,576
Semi-Conductors -- 5.9%
21 Analog Devices, Inc. * 1,389
36 Applied Materials, Inc. * 1,929
-----------
3,318
Telecommunications Equipment -- 11.2%
77 ADC Telecommunications, Inc. * 1,642
12 Corning, Inc. 908
8 Juniper Networks, Inc. * 1,638
28 Nokia OYJ, ADR (Finland) 1,193
19 Nortel Networks Corp. (Canada) 862
-----------
6,243
See notes to financial statements.
35
CHASE VISTA FOCUS FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Total Long-Term Investments $53,757
(Cost $49,051)
- -------------------------------------------------------------------------------------
Short-Term Investment -- 4.0%
- -------------------------------------------------------------------------------------
Principal
Amount
Repurchase Agreement -- 4.0%
---------------------------
$2,235 Greenwich Capital Markets, Inc., Tri Party, 6.55%,
due 11/01/00, (Dated 10/31/00, Proceeds $2,235,
Secured by U.S. Government Agency Obligations,
$2,420, 4.00% through 6.50%, due 09/15/23
through 10/15/23; Market Value $2,281) 2,235
(Cost $2,235)
- -------------------------------------------------------------------------------------
Total Investments -- 100.3% $55,992
(Cost $51,286)
- -------------------------------------------------------------------------------------
See notes to financial statements.
36
CHASE VISTA EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- 96.4%
- -------------------------------------------------------------------------------------
Common Stock -- 96.4%
---------------------
Automotive -- 2.3%
43 Ford Motor Co. $1,127
9 General Motors Corp. 528
-----------
1,655
Banking -- 2.3%
30 Bank of New York Co., Inc. 1,698
Chemicals -- 1.8%
20 Dow Chemical Co. 622
15 E.I. DuPont de Nemours Co. 680
-----------
1,302
Computer Networks -- 1.9%
25 Cisco Systems, Inc. * 1,368
Computer Software -- 5.4%
29 Microsoft Corp. * 1,990
60 Oracle Corp. * 1,980
-----------
3,970
Computers/Computer Hardware -- 4.5%
21 Hewlett-Packard Co. 994
23 International Business Machines Corp. 2,305
-----------
3,299
Consumer Products -- 2.8%
14 Gillette Co. 478
11 Philip Morris Companies, Inc. 419
16 Procter & Gamble Co. 1,157
-----------
2,054
Diversified -- 4.4%
58 General Electric Co. 3,181
Financial Services -- 11.1%
27 American Express Co. 1,626
49 Citigroup, Inc. 2,560
6 J.P. Morgan & Co. 1,043
17 Merrill Lynch & Co., Inc. 1,204
20 Morgan Stanley Dean Witter & Co. 1,630
-----------
8,063
Food/Beverage Products -- 6.2%
24 Anheuser-Busch Companies, Inc. 1,098
14 Coca-Cola Co. 821
14 PepsiCo, Inc. 688
36 Sysco Corp. 1,879
-----------
4,486
Insurance -- 3.9%
29 American International Group, Inc. 2,857
Machinery & Engineering Equipment -- 2.4%
20 Caterpillar, Inc. 701
24 Dover Corp. 1,027
-----------
1,728
See notes to financial statements.
37
CHASE VISTA EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Manufacturing -- 0.7%
10 Honeywell International, Inc. $ 522
Multi-Media -- 0.6%
13 The Walt Disney Co. 458
Office/Business Equipment -- 0.6%
49 Xerox Corp. 413
Oil & Gas -- 6.1%
11 BP Amoco PLC, ADR (United Kingdom) 580
11 Chevron Corp. 936
17 Exxon Mobil Corp. 1,526
19 Royal Dutch Petroleum Co., N.Y. Registered Shares
(Netherlands) 1,110
4 Schlumberger LTD 274
-----------
4,426
Paper/Forest Products -- 0.5%
10 International Paper Co. 366
Pharmaceuticals -- 13.8%
21 Abbott Laboratories 1,114
17 American Home Products Corp. 1,073
20 Bristol-Myers Squibb Co. 1,231
18 Eli Lilly & Co. 1,583
9 Johnson & Johnson 820
15 Merck & Co., Inc. 1,340
41 Pfizer, Inc. 1,780
20 Pharmacia Corp. 1,089
-----------
10,030
Retailing -- 2.7%
14 Home Depot, Inc. 604
1 Kohls Corp. * 76
28 Wal-Mart Stores, Inc. 1,275
-----------
1,955
Semi-Conductors -- 5.9%
54 Intel Corp. 2,439
38 Texas Instruments, Inc. 1,879
-----------
4,318
Telecommunications -- 8.6%
37 AT&T Corp. 853
22 BellSouth Corp. 1,068
41 SBC Communications, Inc. 2,337
35 Verizon Communications 2,037
-----------
6,295
Telecommunications Equipment -- 1.8%
33 Lucent Technologies, Inc. 757
22 Motorola, Inc. 559
-----------
1,316
See notes to financial statements.
38
CHASE VISTA EQUITY INCOME FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Utilities -- 6.1%
7 Dominion Resources, Inc. $ 405
24 DQE, Inc. 849
15 Duke Energy Corp. 1,331
23 Enron Corp. 1,871
-----------
4,456
- -------------------------------------------------------------------------------------
Total Long-Term Investments 70,216
(Cost $63,244)
- -------------------------------------------------------------------------------------
Short-Term Investment -- 3.0%
- -------------------------------------------------------------------------------------
Principal
Amount
Repurchase Agreement -- 3.0%
----------------------------
$2,202 Greenwich Capital Markets, Inc., Tri Party, 6.55%,
due 11/01/00, (Dated 10/31/00, Proceeds $2,202,
Secured by GNMA, $2,223, 7.50%, due 06/15/28;
Market Value $2,247) 2,202
(Cost $2,202)
- -------------------------------------------------------------------------------------
Total Investments -- 99.4% $72,418
(Cost $65,446)
- -------------------------------------------------------------------------------------
See notes to financial statements.
39
CHASE VISTA SMALL CAP OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- 93.2%
- -------------------------------------------------------------------------------------
Common Stock -- 93.2%
--------------------
Advertising -- 1.9%
80 Catalina Marketing Corp. * $ 3,140
58 True North Communications, Inc. 2,190
-----------
5,330
Automotive -- 0.2%
40 Lithia Motors, Inc., Class A * 476
Banking -- 3.0%
51 Commerce Bancorp., Inc. 3,083
158 East-West Bancorp, Inc. 2,993
30 Investors Financial Services Corp. 2,165
-----------
8,241
Biotechnology -- 2.4%
29 Ciphergen Biosystems, Inc. * 911
44 Eden Bioscience Corp. * 1,674
28 Incyte Genomics Inc. * 1,026
55 Inhale Therapeutic Systems, Inc. * 2,721
45 ViroLogic, Inc. * 495
-----------
6,827
Broadcasting/Cable -- 1.6%
139 Entravision Communications Corp., Class A * 2,455
107 Westwood One, Inc. * 2,032
-----------
4,487
Business Services -- 6.6%
67 Administaff, Inc. * 2,371
56 ChoicePoint, Inc. * 2,841
53 CSG Systems International, Inc. * 2,438
67 F.Y.I., Inc. * 2,702
123 Iron Mountain, Inc. * 4,169
62 On Assignment, Inc. * 1,562
26 Professional Detailing, Inc. * 2,300
-----------
18,383
Chemicals -- 1.6%
80 Cabot Microelectronics Corp. * 3,533
58 Spartech Corp. 897
-----------
4,430
Computer Networks -- 2.3%
83 Avocent Corp. * 5,920
17 Network Engines, Inc. * 520
-----------
6,440
Computer Software -- 4.3%
43 Advent Software, Inc. * 2,566
38 Dendrite International Inc. * 824
48 Embarcadero Technologies, Inc. * 2,874
143 Rainbow Technologies, Inc.. * 3,547
39 RSA Security, Inc. * 2,245
-----------
12,056
Construction -- 0.7%
28 Dycom Industries, Inc. * 1,048
29 Lexent, Inc. * 825
-----------
1,873
See notes to financial statements.
40
CHASE VISTA SMALL CAP OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Consumer Services -- 3.5%
143 Career Education Corp. * $ 5,532
66 Edison Schools, Inc. * 1,816
69 Hotel Reservations Network, Inc. Class A * 2,405
-----------
9,753
Electronics/Electrical Equipment -- 10.4%
40 Amphenol Corp., Class A * 2,583
82 Artesyn Technologies, Inc. * 3,350
37 Coherent, Inc. * 1,279
49 CTS Corp. 2,121
99 Kent Electronics Corp. * 1,841
30 National Instruments Corp. * 1,396
58 PerkinElmer, Inc. 6,978
43 Technitrol, Inc. 4,756
109 Vishay Intertechnology, Inc. * 3,257
70 Woodhead Industries, Inc.. 1,546
-----------
29,107
Entertainment/Leisure -- 2.0%
50 Cinar Corp., Class B (Canada) * 156
40 Macrovision Corp. * 2,915
150 Station Casinos, Inc. * 2,419
-----------
5,490
Environmental Services -- 1.2%
93 Tetra Tech, Inc. * 3,246
Financial Services -- 2.5%
56 Federated Investors, Inc., Class B 1,619
104 Raymond James Financial Corp. 3,529
20 SEI Investments Co. 1,842
-----------
6,990
Food/Beverage Products -- 0.8%
56 Performance Food Group Co. * 2,264
Health Care/Health Care Services -- 13.8%
182 ATS Medical, Inc. * 3,340
118 Bruker Daltonics, Inc. * 4,055
96 Community Health Systems, Inc. * 2,703
76 Cooper Companies, Inc. 2,699
46 Datascope Corp. 1,593
78 Endocare, Inc. * 1,387
30 Molecular Devices Corp. * 2,079
63 Novoste Corp. * 1,581
67 Patterson Dental Co. * 2,101
164 Province Healthcare Co. * 6,886
72 Syncor International Corp. * 1,860
64 Varian Medical Systems, Inc.* 3,138
145 Vascular Solutions, Inc. * 2,948
45 Zoll Medical Corp. * 2,206
-----------
38,576
Insurance -- 1.6%
24 Arthur J. Gallagher & Co. 1,515
39 Brown & Brown, Inc. 1,268
22 Radian Group, Inc. 1,559
-----------
4,342
See notes to financial statements.
41
CHASE VISTA SMALLCAP OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Machinery & Engineering Equipment -- 1.4%
61 Cognex Corp. * $ 2,029
43 Zebra Technologies Corp., Class A * 1,888
-----------
3,917
Oil & Gas -- 4.6%
35 Louis Dreyfus Natural Gas * 1,111
50 Newfield Exploration Co. * 1,888
156 Pride International, Inc. * 3,950
46 Stone Energy Corp. * 2,340
82 Veritas DGC, Inc. * 2,448
55 Vintage Petroleum, Inc. 1,159
-----------
12,896
Paper/Forest Products -- 0.4%
70 Buckeye Technologies, Inc. * 1,200
Pharmaceuticals -- 10.2%
143 Alliance Pharmaceutical Corp. * 2,016
29 Amerisource Health Corp., Class A * 1,247
96 Celgene Corp. * 6,163
79 COR Therapeutics, Inc. * 4,435
16 IDEC Pharmaceuticals Corp. * 3,099
111 K-V Pharmaceutical Co., Class A* 4,332
52 Noven Pharmaceuticals, Inc. * 2,331
96 Onyx Pharmaceuticals, Inc. * 1,435
58 PolyMedica Corp. * 3,338
-----------
28,396
Real Estate Investment Trust -- 0.2%
14 Alexandria Real Estate Equities 464
Restaurants/Food Services -- 1.4%
161 Jack in the Box, Inc. * 3,941
Retailing -- 1.6%
138 BJ's Wholesale Club, Inc. * 4,555
Semi-Conductors -- 7.5%
92 Alpha Industries, Inc. * 3,673
79 AudioCodes LTD (Israel) * 3,125
20 Cree, Inc. * 1,985
53 Dallas Semiconductor Corp. 2,100
55 Semtech Corp. * 1,771
138 Silicon Storage Technology, Inc. * 3,129
118 Tvia, Inc. * 1,929
106 Varian, Inc. * 3,257
-----------
20,969
Shipping/Transportation -- 1.1%
58 C.H. Robinson Worldwide, Inc. 3,145
Telecommunications -- 2.2%
143 Boston Communications Group * 3,373
129 Price Communications Corp. * 2,791
-----------
6,164
See notes to financial statements.
42
CHASE VISTA SMALL CAP OPPORTUNITIES FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Telecommunications Equipment -- 0.7%
4 Oplink Communications, Inc. * $ 90
32 Proxim, Inc. * 1,958
-----------
2,048
Transportation -- 0.9%
67 Atlas Air, Inc. * 2,434
Utilities -- 0.6%
52 American States Water Co. 1,625
- -------------------------------------------------------------------------------------
Total Long-Term Investments 260,065
(Cost $195,867)
- -------------------------------------------------------------------------------------
Short-Term Investment -- 6.1%
- -------------------------------------------------------------------------------------
Principal
Amount
Repurchase Agreement -- 6.1%
----------------------------
$17,082 Greenwich Capital Markets, Inc., Tri Party, 6.55%,
due 11/01/00, (Dated 10/31/00, Proceeds $17,085,
Secured by GNMA, $17,524, 6.50% through 7.50%,
due 09/15/20 through 07/15/28;
Market Value $17,424) 17,082
(Cost $17,082)
- -------------------------------------------------------------------------------------
Total Investments -- 99.3% $277,147
(Cost $212,949)
- -------------------------------------------------------------------------------------
See notes to financial statements.
43
CHASE VISTA SMALL CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- 93.3%
- -------------------------------------------------------------------------------------
Common Stock -- 93.3%
---------------------
Advertising -- 2.7%
247 Catalina Marketing Corp.* $ 9,675
127 True North Communications, Inc. 4,783
--------------
14,458
Apparel -- 1.5%
101 Kenneth Cole Productions, Inc., Class A* 4,587
67 Timberland Co., Class A* 3,443
--------------
8,030
Automotive -- 1.1%
283 Copart, Inc.* 4,259
117 Lithia Motors, Inc., Class A* 1,408
--------------
5,667
Banking -- 5.2%
133 Commerce Bancorp., Inc. 8,076
216 Cullen/Frost Bankers, Inc. 7,179
170 Investors Financial Services Corp. 12,216
--------------
27,471
Biotechnology -- 1.1%
116 Inhale Therapeutic Systems, Inc.* 5,781
Broadcasting/Cable -- 1.3%
273 Entravision Communications Corp., Class A* 4,833
118 Westwood One, Inc.* 2,225
--------------
7,058
Business Services -- 5.2%
120 ChoicePoint, Inc.* 6,122
125 CSG Systems International, Inc.* 5,805
80 F.Y.I., Inc.* 3,228
159 Iron Mountain, Inc.* 5,383
66 Learning Tree International, Inc.* 2,966
162 On Assignment, Inc.* 4,070
--------------
27,574
Chemicals -- 1.2%
82 Cytec Industries, Inc.* 2,829
225 Spartech Corp. 3,470
--------------
6,299
Computer Networks -- 3.6%
195 Avocent Corp.* 13,862
85 Black Box Corp.* 5,566
--------------
19,428
Computer Software -- 1.9%
93 Advent Software, Inc.* 5,563
81 RSA Security, Inc.* 4,686
--------------
10,249
Construction -- 1.5%
159 D.R. Horton, Inc. 2,941
54 Dycom Industries, Inc.* 2,049
91 Toll Brothers, Inc.* 2,952
--------------
7,942
Construction Materials -- 0.3%
150 Dal-Tile International, Inc.* 1,856
See notes to financial statements.
44
CHASE VISTA SMALL CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31,
2000 (Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Electronics/Electrical Equipment -- 11.0%
101 Amphenol Corp., Class A* $ 6,509
200 Artesyn Technologies, Inc.* 8,114
71 Coherent, Inc.* 2,461
124 CTS Corp. 5,326
193 Kent Electronics Corp.* 3,592
117 Littelfuse, Inc.* 3,394
133 PerkinElmer, Inc. 15,895
64 Technitrol, Inc. 7,096
215 Vishay Intertechnology, Inc.* 6,452
--------------
58,839
Engineering Services -- 0.6%
72 Jacobs Engineering Group, Inc.* 2,975
Entertainment/Leisure -- 1.9%
10 Cinar Corp., Class B (Canada)* 32
42 Macrovision Corp.* 3,083
450 Station Casinos, Inc.* 7,256
--------------
10,371
Financial Services -- 4.3%
300 Federated Investors, Inc., Class B 8,738
208 Raymond James Financial Corp. 7,028
78 SEI Investments Co. 7,033
--------------
22,799
Food/Beverage Products -- 1.2%
155 Performance Food Group Co.* 6,273
Health Care/Health Care Services -- 12.1%
272 Community Health Systems, Inc.* 7,656
167 Cooper Companies, Inc. 5,960
131 Datascope Corp. 4,529
99 Molecular Devices Corp.* 6,749
172 Oxford Health Plans, Inc.* 5,810
4 Paracelsus Healthcare Corp.* --
259 Patterson Dental Co.* 8,104
389 Province Healthcare Co.* 16,365
94 Syncor International Corp.* 2,404
135 Varian Medical Systems, Inc.* 6,601
--------------
64,178
Insurance -- 4.1%
104 Arthur J. Gallagher & Co. 6,539
183 Brown & Brown, Inc. 5,961
82 Delphi Financial Group, Inc., Class A* 3,019
89 Radian Group, Inc. 6,301
--------------
21,820
Machinery & Engineering Equipment -- 1.4%
100 Cognex Corp.* 3,350
97 Zebra Technologies Corp., Class A* 4,241
--------------
7,591
Oil & Gas -- 5.5%
125 Louis Dreyfus Natural Gas* 4,008
165 Newfield Exploration Co.* 6,229
290 Pride International, Inc.* 7,343
See notes to financial statements.
45
CHASE VISTA SMALL CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31,
2000 (Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Oil & Gas -- Continued
141 Triton Energy LTD (Cayman Islands)* $ 4,320
215 Veritas DGC, Inc.* 6,441
52 Vintage Petroleum, Inc. 1,094
--------------
29,435
Paper/Forest Products-- 0.4%
135 Buckeye Technologies, Inc.* 2,309
Pharmaceuticals-- 6.8%
194 Advance Paradigm, Inc.* 9,477
184 Alliance Pharmaceutical Corp.* 2,600
150 Amerisource Health Corp., Class A* 6,503
77 COR Therapeutics, Inc.* 4,325
46 IDEC Pharmaceuticals Corp.* 8,924
108 K-V Pharmaceutical Co., Class A* 4,214
--------------
36,043
Real Estate Investment Trust-- 1.1%
40 Alexandria Real Estate Equities 1,369
87 Essex Property Trust, Inc. 4,508
--------------
5,877
Restaurants/Food Services-- 0.8%
183 Jack in the Box, Inc.* 4,493
Retailing-- 3.2%
250 BJ's Wholesale Club, Inc.* 8,234
127 Chico's FAS, Inc.* 4,128
287 Stein Mart, Inc.* 4,446
--------------
16,808
Semi-Conductors-- 5.6%
132 Actel Corp.* 4,851
71 Alpha Industries, Inc.* 2,811
69 Cree, Inc.* 6,798
75 Dallas Semiconductor Corp. 2,972
211 Semtech Corp.* 6,798
188 Varian, Inc.* 5,784
--------------
30,014
Shipping/Transportation-- 1.4%
133 C.H. Robinson Worldwide, Inc. 7,246
Telecommunications-- 1.6%
119 Boston Communications Group* 2,820
271 Price Communications Corp.* 5,859
--------------
8,679
Utilities-- 3.7%
171 AGL Resources, Inc. 3,476
89 American States Water Co. 2,785
113 Laclede Gas Co. 2,474
103 Northwest Natural Gas Co. 2,419
301 Public Service Co. of New Mexico 8,309
--------------
19,463
- -------------------------------------------------------------------------------------
Total Long-Term Investments 497,026
(Cost $357,177)
- -------------------------------------------------------------------------------------
See notes to financial statements.
46
CHASE VISTA SMALL CAP EQUITY FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Principal
Amount Issuer Value
- -------------------------------------------------------------------------------------
Short-Term Investment -- 5.4%
- -------------------------------------------------------------------------------------
Repurchase Agreement -- 5.4%
----------------------------
$28,885 Greenwich Capital Markets, Inc., Tri Party, 6.55%,
due 11/01/00, (Dated 10/31/00, Proceeds $28,890,
Secured by U.S. Government Agency Obligations,
$29,792, DN through 6.80%, due 12/15/20 through
10/25/29; Market Value $29,463) $ 28,885
(Cost $28,885)
- -------------------------------------------------------------------------------------
Total Investments -- 98.7% $525,911
(Cost $386,062)
- -------------------------------------------------------------------------------------
See notes to financial statements.
47
CHASE VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS
As of October 31,
2000 (Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- 93.6%
- -------------------------------------------------------------------------------------
Common Stock -- 56.9%
--------------------
Airlines -- 1.0%
40 Southwest Airlines, Inc. $1,146
Automotive -- 0.4%
9 Ford Motor Co. 244
4 General Motors Corp. 236
--------------
480
Banking -- 1.1%
9 Bank of America Corp. 435
16 Bank of New York Co., Inc. 904
--------------
1,339
Biotechnology -- 0.6%
12 Amgen, Inc.* 672
Computer Networks -- 1.7%
37 Cisco Systems, Inc.* 2,011
Computer Software -- 2.6%
29 Microsoft Corp.* 2,029
32 Oracle Corp.* 1,049
--------------
3,078
Computers/Computer Hardware -- 4.5%
23 Compaq Computer Corp. 709
19 Dell Computer Corp.* 566
18 EMC Corp.* 1,644
12 Hewlett-Packard Co. 560
9 International Business Machines Corp. 857
10 Sun Microsystems, Inc.* 1,053
--------------
5,389
Consumer Products -- 2.1%
13 Avon Products, Inc. 638
15 Colgate-Palmolive Co. 899
13 Philip Morris Companies, Inc. 478
7 Procter & Gamble Co. 500
--------------
2,515
Diversified -- 3.6%
63 General Electric Co. 3,427
16 Tyco International LTD (Bermuda) 889
--------------
4,316
Electronics/Electrical Equipment -- 1.6%
9 Sanmina Corp.* 998
22 Solectron Corp.* 960
--------------
1,958
Financial Services -- 5.8%
33 American Express Co. 2,008
28 Charles Schwab Corp. 966
36 Citigroup, Inc. 1,902
17 Merrill Lynch & Co., Inc. 1,208
12 Morgan Stanley Dean Witter & Co. 976
--------------
7,060
Food/Beverage Products -- 2.3%
17 Anheuser-Busch Companies, Inc. 799
14 Coca-Cola Co. 824
See notes to financial statements.
48
CHASE VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Food/Beverage Products -- Continued
24 PepsiCo, Inc. $1,157
--------------
2,780
Health Care/Health Care Services -- 1.4%
13 Guidant Corp. 678
18 Medtronic, Inc. 950
--------------
1,628
Insurance -- 2.3%
28 American International Group, Inc. 2,739
Internet Services/Software -- 0.5%
12 America Online, Inc.* 619
Machinery & Engineering Equipment -- 0.3%
7 Dover Corp. 317
Metals/Mining -- 0.5%
19 Alcoa, Inc. 548
Multi-Media -- 1.5%
25 The Walt Disney Co. 903
12 Time Warner, Inc. 879
--------------
1,782
Oil & Gas -- 3.5%
8 BJ Services Co.* 425
6 Chevron Corp. 480
28 Exxon Mobil Corp. 2,512
14 Royal Dutch Petroleum Co., N.Y. Registered Shares
(Netherlands) 837
--------------
4,254
Pharmaceuticals -- 5.3%
9 Abbott Laboratories 471
8 American Home Products Corp. 489
11 Bristol-Myers Squibb Co. 687
7 Eli Lilly & Co. 608
7 Johnson & Johnson 643
13 Merck & Co., Inc. 1,169
44 Pfizer, Inc. 1,879
8 Pharmacia Corp. 446
--------------
6,392
Retailing -- 3.8%
13 Best Buy Co., Inc.* 655
17 Home Depot, Inc. 733
6 Kohls Corp.* 333
37 Wal-Mart Stores, Inc. 1,662
27 Walgreen Co. 1,233
--------------
4,616
Semi-Conductors -- 3.3%
23 Altera Corp.* 931
12 Applied Materials, Inc.* 628
40 Intel Corp. 1,792
13 Texas Instruments, Inc. 654
--------------
4,005
See notes to financial statements.
49
CHASE VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Telecommunications -- 2.7%
10 AT&T Corp. $ 221
15 BellSouth Corp. 703
20 SBC Communications, Inc. 1,138
11 Verizon Communications 614
25 WorldCom, Inc.* 587
--------------
3,263
Telecommunications Equipment -- 2.3%
34 ADC Telecommunications, Inc.* 733
1 Avaya, Inc.* 17
6 JDS Uniphase Corp.* 500
15 Lucent Technologies, Inc. 347
17 Nortel Networks Corp. (Canada) 793
5 Qualcomm, Inc.* 326
--------------
2,716
Utilities -- 2.2%
13 AES Corp.* 753
6 Duke Energy Corp. 516
17 Enron Corp. 1,393
--------------
2,662
----------------------------------------------------------------------
Total Common Stock 68,285
(Cost $60,251)
----------------------------------------------------------------------
Principal
Amount
U.S. Treasury Securities -- 5.0%
--------------------------------
U.S. Treasury Notes & Bonds,
$1,030 5.63%, 02/15/06 1,021
200 5.88%, 11/30/01 199
1,490 6.00%, 08/15/09 1,505
3,210 6.25%, 08/15/23 3,311
----------------------------------------------------------------------
Total U.S. Treasury Securities 6,036
(Cost $5,980)
----------------------------------------------------------------------
U.S. Government Agency Securities -- 2.1%
-----------------------------------------
500 Federal Home Loan Mortgage Corp., 5.13%, 10/15/08 452
600 Federal National Mortgage Association, 5.13%,
02/13/04 576
Tennessee Valley Authority,
850 5.38%, 11/13/08 777
700 6.75%, 11/01/25 689
----------------------------------------------------------------------
Total U.S. Government Agency Securities 2,494
(Cost $2,520)
----------------------------------------------------------------------
Corporate Notes & Bonds -- 16.4%
--------------------------------
Automotive -- 1.9%
1,600 Daimler Chrysler North America Holding Corp., MTN, 1,629
7.75%, 05/27/03
500 Ford Motor Credit Co., 5.80%, 01/12/09 439
300 General Motors Corp., 6.75%, 05/01/28 258
--------------
2,326
See notes to financial statements.
50
CHASE VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Principal
Amount Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Computers/Computer Hardware -- 1.7%
International Business Machines Corp.,
$1,600 MTN, 5.37%, 09/22/03 $ 1,542
600 6.50%, 01/15/28 523
--------------
2,065
Diversified -- 0.8%
1,000 Textron, Inc., 6.38%, 07/15/04 971
Financial Services -- 4.0%
275 Goldman Sachs Group, Inc., 6.65%, 05/15/09 256
1,770 International Lease Finance Corp., MTN, 8.35%, 1,801
02/04/02
1,870 Merrill Lynch & Co., Inc., Ser. B, MTN, 5.71%, 1,840
01/15/02
800 National Rural Utilities Cooperative Finance Corp., 755
5.50%, 01/15/05
--------------
4,652
Insurance -- 1.0%
1,445 MBIA, Inc., 6.63%, 10/01/28 1,215
Machinery & Engineering Equipment -- 1.6%
2,000 Caterpillar Financial Services Corp., MTN, 5.89%, 1,971
06/17/02
Oil & Gas -- 0.6%
800 Conoco, Inc., 5.90%, 04/15/04 776
Retailing -- 2.7%
500 Dayton-Hudson Corp., 6.40%, 02/15/03 493
1,680 May Department Stores Co., 7.45%, 09/15/11 1,600
1,000 Wal-Mart Stores, Inc., 6.55%, 08/10/04 993
--------------
3,086
Telecommunications -- 0.6%
500 AT&T Corp., 5.63%, 03/15/04 472
300 Bellsouth Capital Funding, 7.88%, 02/15/30 305
--------------
777
Utilities -- 1.5%
1,800 Baltimore Gas & Electric Co., Ser. D, MTN, 6.90%, 1,802
02/01/05
----------------------------------------------------------------------
Total Corporate Notes & Bonds 19,641
(Cost $19,899)
----------------------------------------------------------------------
Residential Mortgage Backed Securities -- 13.2%
-----------------------------------------------
Mortgage Backed Pass-Through Securities -- 13.2%
Federal Home Loan Mortgage Corp.,
2,830 Gold Pool C32996, 7.00%, 11/01/29 2,775
1,231 Gold Pool E00532, 6.50%, 02/01/13 1,206
Federal National Mortgage Association,
1,812 Pool 323614, 6.50%, 02/01/14 1,777
2,075 Pool 509528, 6.50%, 11/01/14 2,032
985 Pool 535157, 6.50%, 02/01/30 947
891 Pool 535497, 6.50%, 08/01/30 856
See notes to financial statements.
51
CHASE VISTA BALANCED FUND
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Principal
Amount Issuer Value
- -------------------------------------------------------------------------------------
Long-Term Investments -- Continued
- -------------------------------------------------------------------------------------
Government National Mortgage Association,
$1,661 Pool 423130, 8.50%, 10/15/29 $ 1,703
1,000 Pool 458931, 6.50%, 10/15/28 965
664 Pool 461750, 6.50%, 06/15/29 641
984 Pool 513746, 7.00%, 08/15/29 969
2,079 Pool 516070, 6.50%, 09/15/29 2,007
-----------------------------------------------------------------------
Total Residential Mortgage Backed Securities 15,878
(Cost $15,863)
- -------------------------------------------------------------------------------------
Total Long-Term Investments 112,334
(Cost $104,513)
- -------------------------------------------------------------------------------------
Short-Term Investment-- 13.3%
- -------------------------------------------------------------------------------------
Repurchase Agreement -- 13.3%
-----------------------------
15,945 Greenwich Capital Markets, Inc., Tri Party, 6.55%,
due 11/01/00, (Dated 10/31/00, Proceeds $15,948,
Secured by U.S. Government Agency Obligations,
$17,040, 4.00% through 10.07%, due 09/15/19
through 07/16/24; Market Value $16,266)
(Cost $15,945) 15,945
- -------------------------------------------------------------------------------------
Total Investments -- 106.9% $128,279
(Cost $120,458)
- -------------------------------------------------------------------------------------
INDEX:
* -- Non-income producing security.
ADR -- American Depositary Receipt.
DN -- Discount Note.
GNMA -- Government National Mortgage Association.
MTN -- Medium Term Note.
See notes to financial statements.
52
STATEMENT OF ASSETS AND LIABILITIES As of October 31, 2000
(Amounts in Thousands, Except Per Share Amounts)
Growth
Core Equity and Capital
Equity Growth Income Growth
Fund Fund Fund Fund
================================================================================================
ASSETS:
Investment in Portfolio, at
value (Note 1) $70,291 $62,553 $1,563,467 $863,730
Other assets .................... -- -- 5 3
Receivables:
Fund shares sold ............. 298 213 1,049 3,481
Expense reimbursement
from Distributor ............. 14 44 5 15
- -------------------------------------------------------------------------------------------------
Total Assets ............. 70,603 62,810 1,564,526 867,229
- -------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Fund shares redeemed ......... 100 67 8,708 5,557
Accrued liabilities: (Note 2)
Administration fees .......... -- -- 129 70
Shareholder servicing fees ... -- -- 321 176
Distribution fees ............ 26 20 492 302
Other ........................ 36 38 614 483
- -------------------------------------------------------------------------------------------------
Total Liabilities ........ 162 125 10,264 6,588
- -------------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital ................. 69,586 66,619 1,042,626 544,440
Accumulated undistributed/
(distributions in excess of) net
investment income ............... -- -- 762 (107)
Accumulated net realized gain
(loss) on investments ........... (389) (741) 210,789 96,049
Net unrealized appreciation
(depreciation) of investments ... 1,244 (3,193) 300,085 220,259
- -------------------------------------------------------------------------------------------------
Net Assets ............... $70,441 $62,685 $1,554,262 $860,641
================================================================================================
Shares of beneficial interest
outstanding ($.001 par value;
unlimited number of shares
authorized):
Class A Shares .................. 2,581 2,933 27,768 10,915
Class B Shares .................. 2,721 2,544 10,196 6,871
Class C Shares .................. 1,109 510 245 106
Class I Shares .................. -- -- 129 316
Net Asset Value:
Class A Shares (and
redemption price) ............... $ 11.04 $ 10.52 $ 40.71 $ 47.91
Class B Shares* ................. $ 10.95 $ 10.42 $ 40.09 $ 46.20
Class C Shares* ................. $ 10.95 $ 10.42 $ 39.10 $ 45.76
Class I Shares (and
redemption price) ............... -- -- $ 40.99 $ 48.76
Class A Maximum Public Offering
Price Per Share (net asset value
per share/94.25%) ................. $ 11.71 $ 11.16 $ 43.19 $ 50.83
================================================================================================
*Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
53
STATEMENT OF ASSETS AND LIABILITIES AS OF OCTOBER 31, 2000
(Amounts in Thousands, Except Per Share Amounts)
Large Cap Equity
Equity Focus Income
Fund Fund Fund
================================================================================================
ASSETS:
Investment securities, at value (Note 1) ... $217,519 $55,992 $72,418
Cash ....................................... -- 1 1
Other assets ............................... 2 -- 1
Receivables:
Interest and dividends .................. 211 20 84
Fund shares sold ........................ 634 11 572
Expense reimbursement
from Distributor ........................ -- 7 --
- -------------------------------------------------------------------------------------------------
Total Assets ........................ 218,366 56,031 73,076
- -------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Fund shares redeemed .................... 4,644 44 66
Accrued liabilities: (Note 2)
Investment advisory fees ................ 73 6 18
Administration fees ..................... 27 7 9
Shareholder servicing fees .............. 37 10 15
Distribution fees ....................... 33 27 26
Custodian fees .......................... 9 11 6
Other ................................... 137 125 79
- -------------------------------------------------------------------------------------------------
Total Liabilities ................... 4,960 230 219
- -------------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital ............................ 150,152 56,325 59,607
Accumulated undistributed/
(distributions in excess of) net
investment income .......................... 61 (2) (6)
Accumulated net realized gain
(loss) on investments ...................... 17,554 (5,228) 6,284
Net unrealized appreciation
of investments ............................. 45,639 4,706 6,972
- -------------------------------------------------------------------------------------------------
Net Assets .......................... $213,406 $55,801 $72,857
- -------------------------------------------------------------------------------------------------
Shares of beneficial interest outstanding
($.001 par value; unlimited number
of shares authorized):
Class A Shares ............................. 4,033 2,089 2,304
Class B Shares ............................. 1,788 2,833 1,107
Class C Shares ............................. 136 750 281
Class I Shares ............................. 7,182 --+ --
Net Asset Value:
Class A Shares (and redemption price) ...... $ 16.22 $ 9.92 $ 19.85
Class B Shares* ............................ $ 16.09 $ 9.79 $ 19.56
Class C Shares* ............................ $ 16.01 $ 9.79 $ 19.54
Class I Shares (and redemption price) ...... $ 16.30 $ 9.98 --
Class A Maximum Public Offering Price Per Share
(net asset value per share/94.25%) ........... $ 17.21 $ 10.53 $ 21.06
Cost of investments .......................... $171,880 $51,286 $65,446
================================================================================================
*Redemption price may be reduced by contingent deferred sales charge.
+Amount rounds to less than one thousand.
See notes to financial statements.
54
STATEMENT OF ASSETS AND LIABILITIES AS OF OCTOBER 31, 2000
(Amounts in Thousands, Except Per Share Amounts)
Small Cap Small Cap
Opportunities Equity Balanced
Fund Fund Fund
================================================================================================
ASSETS:
Investment securities, at value (Note 1) ... $277,147 $525,911 $128,279
Cash ....................................... -- -- 1
Other assets ............................... 31 3 1
Receivables:
Investment securities sold .............. 2,134 6,549 7,582
Interest and dividends .................. 17 118 562
Fund shares sold ........................ 1,372 2,717 126
Expense reimbursement from Distributor .. 5 -- --
- -------------------------------------------------------------------------------------------------
Total Assets ........................ 280,706 535,298 136,551
- -------------------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased ......... 650 594 5,759
Fund shares redeemed .................... 205 1,151 10,555
Accrued liabilities: (Note 2)
Investment advisory fees ................ 147 283 55
Administration fees ..................... 34 65 16
Shareholder servicing fees .............. 38 12 9
Distribution fees ....................... 107 54 40
Custodian fees .......................... 25 21 5
Other ................................... 312 337 91
- -------------------------------------------------------------------------------------------------
Total Liabilities ................... 1,518 2,517 16,530
- -------------------------------------------------------------------------------------------------
NET ASSETS:
Paid in capital ............................ 172,166 320,657 100,441
Accumulated undistributed/
(distributions in excess of) net
investment income .......................... (8) (39) 206
Accumulated net realized gain
on investments ............................. 42,832 72,314 11,553
Net unrealized appreciation of investments . 64,198 139,849 7,821
- -------------------------------------------------------------------------------------------------
Net Assets .......................... $279,188 $532,781 $120,021
- -------------------------------------------------------------------------------------------------
Shares of beneficial interest outstanding
($.001 par value;
unlimited number of shares
authorized):
Class A Shares ............................. 6,328 3,326 5,886
Class B Shares ............................. 4,591 2,144 1,876
Class C Shares ............................. 573 -- 103
Class I Shares ............................. 7 13,419 --
Net Asset Value:
Class A Shares (and redemption price) ...... $ 24.54 $ 27.89 $ 15.34
Class B Shares* ............................ $ 23.96 $ 26.73 $ 15.03
Class C Shares* ............................ $ 23.93 -- $ 14.97
Class I Shares (and redemption price) ...... $ 24.65 $ 28.52 --
Class A Maximum Public Offering Price Per
Share (net asset value per share/94.25%) ..... $ 26.04 $ 29.59 $ 16.28
Cost of investments .......................... $212,949 $386,062 $120,458
================================================================================================
*Redemption price may be reduced by contingent deferred sales charge.
See notes to financial statements.
55
STATEMENT OF OPERATIONS For the year ended October 31, 2000
(Amounts in Thousands)
Growth
Core Equity and Capital
Equity Growth Income Growth
Fund Fund Fund Fund
================================================================================================
INVESTMENT INCOME:
Investment income from
Portfolio ..................... $464 $ 280 $ 26,373 $ 9,084
Foreign taxes withheld ........ (2) -- (177) --
Expenses from Portfolio ....... (390) (402) (8,011) (4,198)
- -------------------------------------------------------------------------------------------------
Total investment
income ................. 72 (122) 18,185 4,886
- -------------------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Administration fees ........... 48 49 1,730 891
Shareholder servicing fees .... 120 123 4,325 2,227
Distribution fees ............. 266 254 6,649 3,835
Accounting fees ............... 30 29 83 77
Printing and postage .......... 15 15 87 71
Professional fees ............. 18 18 79 33
Registration expenses ......... 25 24 51 29
Transfer agent fees ........... 134 170 3,426 2,097
Trustees' fees ................ 2 2 39 20
Other ......................... 16 16 99 64
- -------------------------------------------------------------------------------------------------
Total expenses ......... 674 700 16,568 9,344
- -------------------------------------------------------------------------------------------------
Less amounts waived
(Note 2E) ..................... 216 229 -- --
Less expense reimbursements
(Note 2F) ..................... 29 61 5 23
- -------------------------------------------------------------------------------------------------
Net expenses ........... 429 410 16,563 9,321
- -------------------------------------------------------------------------------------------------
Net investment income
(loss) .............. (357) (532) 1,622 (4,435)
- -------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on
investment transactions ....... (355) (724) 260,150 168,249
Change in net unrealized
appreciation/depreciation
of investments ................ 656 (4,088) (114,508) 39,432
- -------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments ......... 301 (4,812) 145,642 207,681
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets from operations ........ $(56) $(5,344) $147,264 $203,246
================================================================================================
See notes to financial statements.
56
STATEMENT OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 2000
(Amounts in Thousands)
Large Cap Equity
Equity Focus Income
Fund Fund Fund
================================================================================================
INVESTMENT INCOME:
Dividend .................................. $ 2,765 $ 180 $1,026
Interest .................................. 563 150 220
- -------------------------------------------------------------------------------------------------
Total investment income ............ 3,328 330 1,246
- -------------------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees .................. 955 238 340
Administration fees ....................... 358 89 128
Shareholder servicing fees ................ 597 149 212
Distribution fees ......................... 413 333 367
Custodian fees ............................ 84 77 78
Printing and postage ...................... 23 14 14
Professional fees ......................... 35 31 31
Registration expenses ..................... 26 29 23
Transfer agent fees ....................... 218 226 227
Trustees' fees ............................ 12 3 4
Other ..................................... 13 27 2
- -------------------------------------------------------------------------------------------------
Total expenses ..................... 2,734 1,216 1,426
- -------------------------------------------------------------------------------------------------
Less amounts waived (Note 2E) ............. 844 230 36
Less earnings credits (Note 2F) ........... 2 1 2
Less expense reimbursements (Note 2F) ..... -- 20 --
- -------------------------------------------------------------------------------------------------
Net expenses ....................... 1,888 965 1,388
- -------------------------------------------------------------------------------------------------
Net investment income (loss) .... 1,440 (635) (142)
- -------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on
investment transactions ................... 17,571 (1,699) 8,870
Change in net unrealized
appreciation/depreciation
of investments ............................ (885) 550 (3,448)
- -------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments ..................... 16,686 (1,149) 5,422
- -------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets from operations .................... $18,126 $(1,784) $5,280
================================================================================================
See notes to financial statements.
57
STATEMENT OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 2000
(Amounts in Thousands)
Small Cap Small Cap
Opportunities Equity Balanced
Fund Fund Fund
================================================================================================
INVESTMENT INCOME:
Dividend .................................. $ 414 $ 2,043 $ 676
Interest .................................. 624 1,376 3,872
- -------------------------------------------------------------------------------------------------
Total investment income ............ 1,038 3,419 4,548
- -------------------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees .................. 1,431 3,269 701
Administration fees ....................... 330 754 210
Shareholder servicing fees ................ 550 1,033 350
Distribution fees ......................... 1,066 680 503
Custodian fees ............................ 94 128 87
Printing and postage ...................... 22 73 9
Professional fees ......................... 42 49 43
Registration expenses ..................... 59 50 20
Transfer agent fees ....................... 762 499 266
Trustees' fees ............................ 11 25 7
Other ..................................... 68 42 21
- -------------------------------------------------------------------------------------------------
Total expenses ..................... 4,435 6,602 2,217
- -------------------------------------------------------------------------------------------------
Less amounts waived (Note 2E) ............. 365 870 241
Less earnings credits (Note 2F) ........... 3 8 5
Less expense reimbursements (Note 2F) ..... 17 1 --
- -------------------------------------------------------------------------------------------------
Net expenses ....................... 4,050 5,723 1,971
- -------------------------------------------------------------------------------------------------
Net investment income (loss) .... (3,012) (2,304) 2,577
- -------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain on
investment transactions ................... 48,838 91,248 11,591
Change in net unrealized
appreciation/depreciation
of investments ............................ 32,420 60,683 (7,994)
- -------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments ............................ 81,258 151,931 3,597
- -------------------------------------------------------------------------------------------------
Net increase in net
assets from operations .................... $78,246 $149,627 $6,174
================================================================================================
See notes to financial statements.
58
STATEMENT OF CHANGES IN NET ASSETS FOR THE PERIODS INDICATED
(Amounts in Thousands)
Core Equity Equity Growth Growth and Income Capital Growth
Fund Fund Fund Fund
------------------ ------------------ ---------------------- ---------------------
Year 08/12/99* Year 08/12/99*
Ended Through Ended Through Year Ended Year Ended
10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
====================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ................. $ (357) $ (9) $ (532) $ (17) $ 1,622 $ 5,836 $ (4,435) $ (7,004)
Net realized gain (loss) on investments ...... (355) (34) (724) (17) 260,150 372,725 168,249 185,113
Change in net unrealized appreciation/
depreciation of investments .................. 656 588 (4,088) 895 (114,508) (120,708) 39,432 (28,226)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations .......................... (56) 545 (5,344) 861 147,264 257,853 203,246 149,883
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ........................ -- -- -- -- (832) (6,109) -- --
Net realized gain on investment transactions . -- -- -- -- (270,007) (222,212) (101,933) (111,161)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders ...... -- -- -- -- (270,839) (228,321) (101,933) (111,161)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from capital
share transactions (Note 9) .................. 55,657 14,295 48,295 18,873 (259,825) (161,487) (179,878) (289,248)
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets .. 55,601 14,840 42,951 19,734 (383,400) (131,955) (78,565) (250,526)
NET ASSETS:
Beginning of period .......................... 14,840 -- 19,734 -- 1,937,662 2,069,617 939,206 1,189,732
- ------------------------------------------------------------------------------------------------------------------------------------
End of period ................................ $70,441 $14,840 $62,685 $19,734 $1,554,262 $1,937,662 $860,641 $ 939,206
====================================================================================================================================
*Commencement of operations
STATEMENT OF CHANGES IN NET ASSETS for the periods indicated
See notes to financial statements.
59
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED OCTOBER 31,
(Amounts in Thousands)
Large Cap Equity Focus Equity Income
Fund Fund Fund
----------------------- ------------------- -------------------
2000 1999 2000 1999 2000 1999
====================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ......................... $ 1,440 $ 2,223 $ (635) $ (155) $ (142) $659
Net realized gain (loss) on investments .............. 17,571 15,831 (1,699) (2,676) 8,870 11,186
Change in net unrealized appreciation/depreciation
of investments ....................................... (885) 7,104 550 4,338 (3,448) 1,028
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations .................................. 18,126 25,158 (1,784) 1,507 5,280 12,873
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ................................ (1,497) (2,270) -- (18) -- (784)
Net realized gain on investment transactions ......... (15,815) (11,203) -- -- (10,922) (648)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders .............. (17,312) (13,473) -- (18) (10,922) (1,432)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from capital
share transactions (Note 9) .......................... (39,522) 63,808 10,238 5,798 (21,755) (21,211)
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets .......... (38,708) 75,493 8,454 7,287 (27,397) (9,770)
NET ASSETS:
Beginning of period .................................. 252,114 176,621 47,347 40,060 100,254 110,024
- ------------------------------------------------------------------------------------------------------------------------------------
End of period ........................................ $213,406 $252,114 $55,801 $47,347 $ 72,857 $100,254
====================================================================================================================================
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED OCTOBER 31,
See notes to financial statements.
60
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED OCTOBER 31,
(Amounts in Thousands)
Small Cap Opportunities Small Cap Equity Balanced
Fund Fund Fund
----------------------- -------------------- -------------------
2000 1999 2000 1999 2000 1999
====================================================================================================================================
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net investment income (loss) ......................... $ (3,012) $ (1,918) $ (2,304) $ (1,863) $ 2,577 $ 2,976
Net realized gain on investments ..................... 48,838 7,125 91,248 47,405 11,591 11,462
Change in net unrealized appreciation/depreciation
of investments ....................................... 32,420 24,804 60,683 11,931 (7,994) (365)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets
from operations .................................. 78,246 30,011 149,627 57,473 6,174 14,073
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM: (Note 1)
Net investment income ................................ -- -- -- -- (2,473) (2,915)
Net realized gain on investment transactions ......... -- -- (47,381) (3,874) (11,491) (4,832)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders .............. -- -- (47,381) (3,874) (13,964) (7,747)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) from capital
share transactions (Note 9) .......................... 49,685 (2,062) 6,683 (96,831) (15,993) 18,942
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets .......... 127,931 27,949 108,929 (43,232) (23,783) 25,268
NET ASSETS:
Beginning of period .................................. 151,257 123,308 423,852 467,084 143,804 118,536
- ------------------------------------------------------------------------------------------------------------------------------------
End of period ........................................ $279,188 $151,257 $532,781 $423,852 $120,021 $143,804
====================================================================================================================================
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED OCTOBER 31,
See notes to financial statements.
61
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Mutual Fund Group (the "Trust") was organized on May 11, 1987 as a Massachusetts
business trust, and is registered under the Investment Company Act of 1940, as
amended, (the "1940 Act") as an open-end management investment company. Core
Equity Fund ("CEF"), Equity Growth Fund ("EGF"), Growth and Income Fund ("GIF"),
Capital Growth Fund ("CGF"), Large Cap Equity Fund ("LCEF"), Focus Fund ("FF"),
Equity Income Fund ("EIF"), Small Cap Opportunities Fund ("SCOF"), Small Cap
Equity Fund ("SCEF") and Balanced Fund ("BF"), collectively the "Funds", are
separate series of the Trust. The Funds offer various classes of shares as
follows:
Fund Class Offered
- ---------------------------------------------------------------------------------
CEF Class A, Class B, Class C
EGF Class A, Class B, Class C
GIF Class A, Class B, Class C, Institutional
CGF Class A, Class B, Class C, Institutional
LCEF Class A, Class B, Class C, Institutional
FF Class A, Class B, Class C, Institutional
EIF Class A, Class B, Class C
SCOF Class A, Class B, Class C, Institutional
SCEF Class A, Class B, Institutional
BF Class A, Class B, Class C
Class A shares generally provide for a front-end sales charge while Class B
shares and Class C shares provide for a contingent deferred sales charge. All
classes of shares have equal rights as to earnings, assets and voting privileges
except that each class may bear different distribution fees and each class has
exclusive voting rights with respect to its distribution plan. No sales charges
are assessed with respect to the Institutional Class ("Class I").
THE FOLLOWING IS A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE
FUNDS:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
A. CEF, EGF, GIF AND CGF
CEF, EGF, GIF and CGF utilize the Master Feeder Fund Structure and seek to
achieve their investment objectives by investing all of their investable
assets in the Core Equity Portfolio, Equity Growth Portfolio, Growth and
Income Portfolio and the Capital Growth Portfolio, respectively, (the
"Portfolios"), which like the Funds, are open-end management investment
companies having the same investment objectives as the Funds. As of October
31, 2000, CEF, EGF, GIF and CGF owned 27.64%, 17.44%, 70.83% and 99.99% of
the net assets of their respective Portfolios. The financial statements of
the Portfolios, including the Portfolios of Investments, are included
elsewhere in this report. The financial statements of the Portfolios should
be read in conjunction with the financial statements of the Funds.
62
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
1. VALUATION OF INVESTMENTS -- CEF, EGF, GIF and CGF record their
investments in their respective Portfolios at value. Securities of the
Portfolios are recorded at value as more fully discussed in the notes to
those financial statements.
2. INVESTMENT INCOME AND EXPENSES -- CEF, EGF, GIF and CGF record daily
their pro-rata share of the respective Portfolio's income, expenses and
realized and unrealized gains and losses. In addition, the Funds accrue
their own expenses daily as incurred. Realized gains/losses and changes
in unrealized appreciation/depreciation represent the Fund's share of
such elements allocated from the Portfolio.
B. LCEF, FF, EIF, SCOF, SCEF AND BF
1. VALUATION OF INVESTMENTS -- Equity securities, purchased options and
futures are valued at the last sale price on the exchange on which they
are primarily traded, including the NASDAQ National Market. Securities
for which sale prices are not available and other over-the-counter
securities are valued at the last quoted bid price. Bonds and other fixed
income securities (other than short-term obligations), including listed
issues, are valued on the basis of the valuations supplied by pricing
services or by matrix pricing systems of a major dealer in bonds.
Short-term debt securities with 61 days or more to maturity at time of
purchase are valued, through the 61st day prior to maturity, at market
value based on quotations obtained from market makers or other
appropriate sources; thereafter, the value on the 61st day is amortized
on a straight-line basis over the remaining number of days to maturity.
Short-term investments with 60 days or less to maturity at time of
purchase are valued at amortized cost, which approximates market.
Portfolio securities for which there are no such quotations or valuations
are valued at fair value as determined in good faith by or at the
direction of the Trustees.
2. REPURCHASE AGREEMENTS -- It is each Fund's policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government
Agency securities. All collateral is held by the Fund's custodian bank,
subcustodian or a bank with which the custodian bank has entered into a
subcustodian agreement or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the collateral by
the Fund may be delayed or limited.
3. FUTURES CONTRACTS -- When a Fund enters into a futures contract, it
makes an initial margin deposit in a segregated account, either in cash
or liquid securities. Thereafter, the futures contract is marked to
market and the Fund makes (or receives) additional cash payments daily to
(or from) the broker. Changes in the value of the contract are recorded
as unrealized appreciation/depreciation until the contract is closed or
settled.
Index futures contracts are used to control the asset mix of the
portfolios in the most efficient manner. Short index futures contracts
are used for hedging purposes, i.e. to reduce the exposure to equities.
Long index futures contracts are used to gain exposure to equities, when
it is anticipated that this will be more efficient than buying stocks
directly. Use of
63
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
long futures contracts subject the Fund to risk of loss up to the amount
of the nominal value of the futures contracts as shown in the Portfolio
of Investments. Use of short futures contracts subject the Fund to
unlimited risk.
The Funds may enter into futures contracts only on exchanges or boards of
trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Funds' credit risk is limited to
failure of the exchange or board of trade. As of October 31, 2000, the
Funds had no outstanding futures contracts.
4. DOLLAR ROLLS -- BF enters into dollar rolls in which the Fund sells
mortgage-backed securities for delivery in the current month and
simultaneously contracts to repurchase substantially similar (same type,
coupon and maturity) securities on a specified future date. During the
roll period, the Fund forgoes principal and interest paid on the
securities. The Fund is compensated by the interest earned on the cash
proceeds of the initial sale and a fee earned for entering into the roll
transaction. Income is recognized over the duration of the roll
transaction.
5. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Investment
transactions are accounted for on the trade date (the date the order to
buy or sell is executed). Securities gains and losses are calculated on
the identified cost basis. Interest income is accrued as earned. Dividend
income is recorded on the ex-dividend date.
C. GENERAL POLICIES
1. ORGANIZATION EXPENSES -- Organization and initial registration costs
incurred in connection with establishing Funds which commenced operations
prior to June 30, 1998 have been deferred and are being amortized on a
straight-line basis over a sixty month period beginning at the
commencement of operations of each Fund.
2. FEDERAL INCOME TAXES -- Each Fund is treated as a separate taxable
entity for Federal income tax purposes. Each Fund's policy is to comply
with the provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute to shareholders all of its
distributable net investment income, and net realized gain on
investments. In addition, each Fund intends to make distributions as
required to avoid excise taxes. Accordingly, no provision for Federal
income or excise tax is necessary.
3. DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions paid to
shareholders are recorded on the ex-dividend date. The amount of
dividends and distributions from net investment income and net realized
capital gains is determined in accordance with Federal income tax
regulations, which may differ from generally accepted accounting
principles. To the extent these "book/tax" differences are permanent in
nature, (i.e., that they result from other than timing of
recognition -- "temporary differences") such amounts are reclassified
within the capital accounts based on their Federal tax-basis treatment.
Dividends and distributions which exceed net investment income or net
realized capital gains for financial reporting purposes but not for tax
64
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
purposes are reported as distributions in excess of net investment income
or net realized capital gains.
The following amounts were reclassified within the capital accounts (in
thousands):
Accumulated
undistributed Accumulated
(overdistributed) net realized
Paid-in net investment gain (loss)
capital income on investments
- ----------------------------------------------------------------------------------------------------
CEF $ (357) $ 357 $ --
EGF (532) 532 --
GIF 46,324 132 (46,456)
CGF 67,755 4,425 (72,180)
LCEF (1) (8) 9
FF (634) 634 --
EIF 2,377 140 (2,517)
SCOF (18) 3,009 (2,991)
SCEF 16,604 2,298 (18,902)
BF 1 (1) --
The reclassifications for CEF, EGF, FF and SCOF primarily relate to the
character for tax purposes of current year net operating losses. The
reclassifications for GIF and EIF primarily relate to the character for
tax purposes of equalization debits. The reclassifications for CGF and
SCEF primarily relate to the character for tax purposes of equalization
debits and current year net operating losses. The reclassifications for
LCEF primarily relate to the character for tax purposes of current year
distributions and REIT investment activity. The reclassifications for BF
primarily relate to the character for tax purposes of paydown gains and
losses and REIT investment activity.
4. EXPENSES -- Expenses directly attributable to a Fund are charged to
that Fund; other expenses are allocated proportionately among each Fund
within the Trust in relation to the net assets of each Fund or on another
reasonable basis. Expenses directly attributable to a particular class
are charged to that class. In calculating the net asset value per share
of each class, investment income, realized and unrealized gains and
losses and expenses other than class specific expenses, are allocated
daily to each class of shares based upon the proportion of net assets of
each class at the beginning of each day.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. INVESTMENT ADVISORY FEE -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank, ("Chase" or the "Advisor") acts as the
Investment Advisor to LCEF, FF, EIF, SCOF, SCEF and BF. Chase is a direct
wholly-owned subsidiary of The Chase Manhattan Corporation. As Investment
Advisor, Chase supervises the investments of the Funds and for such services
is paid a fee. The fee is computed daily and paid monthly at an annual rate
equal to 0.40% for LCEF, FF and EIF, 0.65% for SCOF and SCEF, and 0.50% for
BF of average daily net assets.
65
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
The Advisor voluntarily waived fees as outlined in Note 2.E. below.
Chase Fleming Asset Management (USA) Inc. ("CFAM (USA)") is the
sub-investment adviser to LCEF, FF, EIF, SCOF, SCEF and BF pursuant to a
Sub-Investment Advisory Agreement between Chase and CFAM (USA). CFAM (USA),
formerly Chase Asset Management Inc., is a wholly-owned subsidiary of Chase
and is entitled to receive a fee, payable by Chase from its advisory fee, at
an annual rate equal to 0.20% for LCEF, FF and EIF, 0.30% for SCOF and SCEF,
and 0.25% for BF of average daily net assets.
B. SHAREHOLDER SERVICING FEES -- The Trust has adopted an Administrative
Services Plan which, among other things, provides that the Trust on behalf of
the Funds may obtain the services of one or more Shareholder Servicing
Agents. For their services, the Shareholder Servicing Agents receive a fee
that is computed daily and paid monthly at an annual rate equal to 0.25% of
the average daily net assets of each of the classes of the Funds, excluding
Class A Shares of SCEF. SCEF is charged a fee from non-affiliated Shareholder
Servicing Agents not to exceed 0.25% of Class A Shares average daily net
assets. For the year ended October 31, 2000, Shareholder Servicing charges
paid to Chase or its affiliates were as follows (amounts in thousands, before
waivers):
Fund Amount Fund Amount
- ----------------------------------------------------------------------------------------------
CEF $ 120 FF $ 148
EGF 123 EIF 210
GIF 4,254 SCOF 546
CGF 2,149 SCEF 1,018
LCEF 596 BF 350
The Shareholder Servicing Agents have voluntarily waived fees as outlined in
Note 2.E. below.
C. DISTRIBUTION AND SUB-ADMINISTRATION FEES -- Pursuant to a Distribution
and Sub-Administration Agreement, Vista Fund Distributors, Inc. (the
"Distributor"), a wholly owned subsidiary of The BISYS Group, Inc. ("BISYS"),
is the Trust's exclusive underwriter and promotes and arranges for the sale
of each Fund's shares. In addition, the Distributor provides certain
sub-administration services to the Trust, including providing officers,
clerical staff and office space for an annual fee of 0.05% of the average
daily net assets of each Fund.
The Trustees have adopted Distribution Plans (the "Distribution Plans") for
Class A, B and C for the Funds in accordance with Rule 12b-1 under the 1940
Act. There is no Distribution Plan for the Institutional Classes. The Class A
Distribution Plans provide that each Fund shall pay distribution fees,
including payments to the Distributor, at annual rates not to exceed 0.25% of
the average daily net assets of the Class A Shares of each Fund. The Class B
and Class C Distribution Plans provide that each Fund shall pay distribution
fees, including payments to the Distributor, at an annual rate not to exceed
0.75% of the average annual net assets of the Class B and Class C Shares for
distribution services.
The Distributor voluntarily waived fees as outlined in Note 2.E. below.
66
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
D. ADMINISTRATION FEE -- Pursuant to an Administration Agreement, Chase (the
"Administrator") provides certain administration services to the Trust. For
these services and facilities, the Administrator receives from LCEF, FF, EIF,
SCOF, SCEF and BF a fee computed at the annual rate equal to 0.10% of the
respective Fund's average daily net assets and from CEF, EGF, GIF and CGF, a
fee computed at the annual rate equal to 0.05% of the respective Fund's
average daily net assets.
The Administrator voluntarily waived fees as outlined in Note 2.E. below.
E. WAIVER OF FEES -- For the year ended October 31, 2000, the Funds' vendors
voluntarily waived fees for each of the Funds as follows (amounts in
thousands):
Investment Shareholder
Fund Advisory Administration Servicing Distribution
- --------------------------------------------------------------------------------------------------
CEF $ -- $ 48 $120 $48
EGF -- 49 123 57
LCEF 649 162 33 --
FF 208 -- 22 --
EIF 36 -- -- --
SCOF 119 -- 246 --
SCEF -- -- 870 --
BF -- -- 241 --
F. OTHER -- Certain officers of the Trust are officers of Vista Fund
Distributors, Inc. or of its parent corporation, BISYS.
Chase provides portfolio accounting and custody services for LCEF, FF, EIF,
SCOF, SCEF and BF. Compensation for such services is presented in the
Statement of Operations as custodian fees. Custodian fees are subject to
reduction by credits earned by each Fund, based on cash balances held by
Chase as custodian. Such earnings credits are presented separately in the
Statement of Operations. The Funds could have invested the cash balances
utilized in connection with the earnings credit arrangements in income
producing assets if they had not entered into such arrangements.
The Distributor voluntarily reimbursed expenses of the Funds in the amounts
as shown on the Statement of Operations.
3. INVESTMENT TRANSACTIONS
For the year ended October 31, 2000, purchases and sales of investments
(excluding short-term investments) were as follows (in thousands):
Purchases Sales Purchases Sales
(excluding U.S. (excluding U.S. of U.S. of U.S.
Government) Government) Government Government
- -------------------------------------------------------------------------------------------------
LCEF $ 60,799 $121,648 $ -- $ --
FF 77,570 70,220 -- --
EIF 36,731 76,615 -- --
SCOF 226,230 183,795 -- --
SCEF 360,433 415,143 -- --
BF 108,706 85,595 61,443 110,054
67
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
4. FEDERAL INCOME TAX MATTERS
For Federal income tax purposes, the cost and unrealized appreciation
(depreciation) in value of the investment securities at October 31, 2000 are as
follows (in thousands):
Gross Gross
Aggregate unrealized unrealized Net unrealized
cost appreciation depreciation appreciation
- --------------------------------------------------------------------------------------------------
LCEF $171,896 $ 53,966 $ (8,343) $ 45,623
FF 51,286 7,894 (3,188) 4,706
EIF 65,676 13,541 (6,799) 6,742
SCOF 212,949 77,396 (13,198) 64,198
SCEF 386,062 156,311 (16,462) 139,849
BF 120,467 13,485 (5,673) 7,812
At October 31, 2000, the following Fund has capital loss carryovers which will
be available to offset capital gains. To the extent that any net capital loss
carryovers are used to offset future capital gains, it is probable that the
gains so offset will not be distributed to shareholders.
Expiration
Fund Amount Date
- ------------------------------------------------------------------------------------
FF $ 786,836 Oct. 31, 2006
2,742,053 Oct. 31, 2007
1,699,223 Oct. 31, 2008
----------
$5,228,112
During the year ended October 31, 2000, SCOF utilized capital loss carryforwards
of $2,971,763.
5. CONCENTRATIONS
As of October 31, 2000, FF, SCOF and SCEF invested 34.6%, 25.5% and 22.5% of
their respective portfolios in securities issued by technology sector companies,
such as computer hardware and software companies, internet connectivity
providers and telecommunications equipment manufacturers. Valuations of
companies in the technology sector are typically subject to greater volatility
than other sectors.
As of October 31, 2000, FF and SCOF invested 22.4% and 26.6% of their respective
portfolios in securities issued by companies in the health care industry, such
as biotechnology companies, pharmaceutical companies and health care service
providers.
6. TRUSTEE COMPENSATION
The Funds have adopted an unfunded noncontributory defined benefit pension plan
covering all independent trustees of the Funds who will have served as an
independent trustee for at least five years at the time of retirement. Benefits
under this plan are based on compensation and years of service. Pension expenses
for the year ended October 31, 2000, included in Trustees Fees in the Statement
of Operations, and accrued pension liability included in other
68
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
accrued liabilities in the Statement of Assets and Liabilities were as follows
(in thousands):
Accrued
Pension Pension
Expenses Liability
- -----------------------------------------------------------------------------------------
CEF $ --+ $ 1
EGF --+ 1
GIF 14 96
CGF 7 54
LCEF 4 15
FF 1 2
EIF 1 6
SCOF 2 8
SCEF 7 39
BF 2 10
+ Amounts round to less than one thousand.
7. BANK BORROWINGS
The LCEF, FF, EIF, SCOF, SCEF and BF may borrow money for temporary or emergency
purposes. Any borrowings representing more than 5% of a Fund's total assets must
be repaid before the Fund may make additional investments. The Funds have
entered into an agreement, enabling them to participate with other Chase Vista
Funds in an unsecured line of credit with a syndicate of banks, which permits
borrowings up to $350 million, collectively. Interest is charged to each Fund
based on its borrowings at an annual rate equal to the sum of the Federal Funds
Rate plus 0.50%. The Funds also pay a commitment fee of 0.10% per annum on the
average daily amount of the available commitment, which is allocated, on a
pro-rata basis to the funds. The commitment fee is included in Other expenses on
the Statement of Operations. Borrowings are payable on demand.
The Funds had no borrowings outstanding at October 31, 2000, nor at anytime
during the year then ended.
8. SUBSEQUENT EVENTS
On September 13, 2000, The Chase Manhattan Corporation and J.P. Morgan & Co.
Incorporated announced that they have entered into an agreement and plan of
merger. The transaction is expected to close in December 2000 and is subject to
approval by shareholders of both companies.
On October 25, 2000, the Board of Trustees of Mutual Fund Group approved a Plan
of Reorganization (the "Reorganization Plan") between the Funds listed below.
Under the Reorganization Plan, the acquired fund would transfer all of its
assets and liabilities to the acquiring fund in a tax-free reorganization. In
exchange, shareholders of the acquired fund would receive shares of the
acquiring fund with a value equal to their respective holdings in the acquired
fund. The costs and expenses associated with the Reorganization will be borne by
the Advisor and not by the Funds (or by the shareholders of either fund). The
Reorganization can be consummated only if, among other things, it is
69
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
approved by the vote of a majority (as defined by the 1940 Act) of outstanding
voting securities of the Funds. A Special Meeting of Shareholders ("Meeting") of
the acquired Funds will be held on January 26, 2001 to vote on the
Reorganization Plan. If the Reorganization Plan is approved at the Meeting, the
Reorganization is expected to become effective on or about February 16, 2001.
Acquired Fund Acquiring Fund
- ---------------------------------------------------------------------
CEF Chase Core Equity Fund
EGF Chase Equity Growth Fund
EIF Chase Equity Income Fund
Chase Small Capitalization Fund SCEF
BF Chase Balanced Fund
70
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
9. CAPITAL SHARE TRANSACTIONS
Capital share transactions were as follows for the periods presented (amounts in
thousands):
CORE EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
- ------------------------------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares Amount Shares
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold $28,089 2,518 $28,811 2,589 $11,714 1,051
Shares issued in reinvestment of
distributions -- -- -- -- -- --
Shares redeemed (7,133) (640) (4,696) (425) (1,128) (101)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in Fund shares
outstanding $20,956 1,878 $24,115 2,164 $10,586 950
===================================================================================================================================
PERIOD ENDED OCTOBER 31, 1999*
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 7,191 713 $ 5,651 562 $ 1,624 161
Shares issued in reinvestment of
distributions -- -- -- -- -- --
Shares redeemed (99) (10) (54) (5) (18) (2)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in Fund shares
outstanding $ 7,092 703 $ 5,597 557 $ 1,606 159
===================================================================================================================================
EQUITY GROWTH FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
- ------------------------------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares Amount Shares
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold $31,922 2,731 $ 28,261 2,412 $5,671 483
Shares issued in reinvestment of
distributions -- -- -- -- -- --
Shares redeemed (6,645) (566) (10,077) (878) (837) (71)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in Fund shares
outstanding $25,277 2,165 $ 18,184 1,534 $4,834 412
===================================================================================================================================
PERIOD ENDED OCTOBER 31, 1999~
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 7,810 775 $ 10,736 1,068 $ 984 98
Shares issued in reinvestment of
distributions -- -- -- -- -- --
Shares redeemed (75) (7) (582) (58) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in Fund shares
outstanding $ 7,735 768 $ 10,154 1,010 $ 984 98
===================================================================================================================================
*For Class A and B shares, from commencement of operations on August 12, 1999.
For Class C shares, from commencement of offering on August 13, 1999.
~For Class A shares, from commencement of operations on August 12, 1999. For
Class B shares, from commencment of offering on August 13, 1999. For Class C
shares, from commencement of offering on August 20, 1999.
71
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
GROWTH & INCOME FUND
- ----------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
- ----------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares
- ----------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- ----------------------------------------------------------------------------------------------------------------
Shares sold $ 53,352 1,332 $ 17,966 452
Shares issued in reinvestment of distributions 179,794 4,747 68,402 1,827
Shares redeemed (401,593) (10,038) (169,343) (4,286)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (168,447) (3,959) $ (82,975) (2,007)
===============================================================================================================
YEAR ENDED OCTOBER 31, 1999
- ----------------------------------------------------------------------------------------------------------------
Shares sold $ 298,888 6,816 $ 63,796 1,469
Shares issued in reinvestment of distributions 154,173 3,732 55,045 1,346
Shares redeemed (589,252) (13,490) (139,404) (3,229)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (136,191) (2,942) $ (20,563) (414)
===============================================================================================================
GROWTH & INCOME FUND
- -------------------------------------------------------------------------------------------------------------
CLASS C CLASS I
- -------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares
- -------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- -------------------------------------------------------------------------------------------------------------
Shares sold $ 2,895 75 $ 2,359 58
Shares issued in reinvestment of distributions 1,344 37 2,010 52
Shares redeemed (4,236) (110) (12,775) (314)
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 3 2 $ (8,406) (204)
============================================================================================================
YEAR ENDED OCTOBER 31, 1999
- -------------------------------------------------------------------------------------------------------------
Shares sold $ 7,831 184 $ 11,576 264
Shares issued in reinvestment of distributions 619 15 3,068 74
Shares redeemed (2,842) (67) (24,985) (568)
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 5,608 132 $ (10,341) (230)
============================================================================================================
CAPITAL GROWTH FUND
- ----------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
- ----------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares
- ----------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- ----------------------------------------------------------------------------------------------------------------
Shares sold $ 336,004 7,550 $ 124,480 2,904
Shares issued in reinvestment of distributions 57,039 1,456 35,275 930
Shares redeemed (510,528) (11,556) (215,940) (5,088)
- ----------------------------------------------------------------------------------------------------------------
Net decrease in Fund shares outstanding $ (117,485) (2,550) $ (56,185) (1,254)
===============================================================================================================
YEAR ENDED OCTOBER 31, 1999
- ----------------------------------------------------------------------------------------------------------------
Shares sold $ 726,338 17,435 $ 132,171 3,272
Shares issued in reinvestment of distributions 62,638 1,590 36,123 939
Shares redeemed (965,361) (23,229) (247,415) (6,126)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (176,385) (4,204) $ (79,121) (1,915)
===============================================================================================================
CAPITAL GROWTH FUND
- -------------------------------------------------------------------------------------------------------------
CLASS C CLASS I
- -------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares
- -------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- -------------------------------------------------------------------------------------------------------------
Shares sold $ 7,719 183 $ 3,947 88
Shares issued in reinvestment of distributions 386 10 1,879 47
Shares redeemed (9,576) (227) (10,563) (231)
- -------------------------------------------------------------------------------------------------------------
Net decrease in Fund shares outstanding $(1,471) (34) $ (4,737) (96)
============================================================================================================
YEAR ENDED OCTOBER 31, 1999
- -------------------------------------------------------------------------------------------------------------
Shares sold $ 7,625 189 $ 12,399 296
Shares issued in reinvestment of distributions 270 7 5,013 126
Shares redeemed (5,821) (144) (53,228) (1,273)
- -------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 2,074 52 $ (35,816) (851)
============================================================================================================
72
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
LARGE CAP EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
- -----------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- -----------------------------------------------------------------------------------------------------------------
Shares sold $ 24,949 1,540 $ 8,171 506
Shares issued in reinvestment of distributions 4,010 256 1,411 91
Shares redeemed (32,497) (1,998) (16,064) (988)
- -----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (3,538) (202) $ (6,482) (391)
================================================================================================================
YEAR ENDED OCTOBER 31, 1999*
- -----------------------------------------------------------------------------------------------------------------
Shares sold $ 33,994 2,075 $ 36,595 2,224
Shares issued in reinvestment of distributions 3,165 205 667 43
Shares redeemed (21,731) (1,339) (11,804) (729)
- -----------------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 15,428 941 $ 25,458 1,538
================================================================================================================
LARGE CAP EQUITY FUND
- --------------------------------------------------------------------------------------------------------------
CLASS C CLASS I
- --------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares
- --------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- --------------------------------------------------------------------------------------------------------------
Shares sold $1,014 62 $ 22,559 1,369
Shares issued in reinvestment of distributions 59 4 6,333 401
Shares redeemed (475) (29) (58,992) (3,611)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 598 37 $(30,100) (1,841)
=============================================================================================================
YEAR ENDED OCTOBER 31, 1999*
- --------------------------------------------------------------------------------------------------------------
Shares sold $1,986 123 $ 37,898 2,277
Shares issued in reinvestment of distributions 3 -- 4,715 303
Shares redeemed (397) (24) (21,283) (1,300)
- --------------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $1,592 99 $ 21,330 1,280
=============================================================================================================
FOCUS FUND
- ----------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
- ----------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares
- ----------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- ----------------------------------------------------------------------------------------------------------------
Shares sold $ 12,635 1,077 $ 12,266 1,065
Shares issued in reinvestment of distributions -- -- -- --
Shares redeemed (8,143) (721) (6,187) (557)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 4,492 356 $ 6,079 508
===============================================================================================================
YEAR ENDED OCTOBER 31, 1999
- ----------------------------------------------------------------------------------------------------------------
Shares sold $ 10,321 1,026 $ 15,774 1,580
Shares issued in reinvestment of distributions 16 2 -- --
Shares redeemed (11,827) (1,179) (11,505) (1,160)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (1,490) (151) $ 4,269 420
===============================================================================================================
FOCUS FUND
- ---------------------------------------------------------------------------------------------------------------
CLASS C CLASS I
- ---------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares
- ---------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- ---------------------------------------------------------------------------------------------------------------
Shares sold $ 3,163 280 $ -- --
Shares issued in reinvestment of distributions -- -- -- --
Shares redeemed (3,496) (308) -- --
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ (333) (28) $ -- --
==============================================================================================================
YEAR ENDED OCTOBER 31, 1999*
- ---------------------------------------------------------------------------------------------------------------
Shares sold $ 6,636 659 $ -- --
Shares issued in reinvestment of distributions -- -- -- --
Shares redeemed (3,617) (359) -- --
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 3,019 300 $ -- --
==============================================================================================================
*For Class C shares, from commencement of offering on November 11, 1998.
73
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
EQUITY INCOME FUND
- -----------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
- -----------------------------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares Amount Shares
- -----------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- ----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 12,850 636 $ 2,235 112 $ 1,014 50
Shares issued in reinvestment of
distributions 5,927 306 2,834 148 687 36
Shares redeemed (35,510) (1,760) (9,382) (482) (2,410) (129)
- -----------------------------------------------------------------------------------------------------------------------------------
Net decrease in Fund shares
outstanding $(16,733) (818) $ (4,313) (222) $ (709) (43)
==================================================================================================================================
YEAR ENDED OCTOBER 31, 1999
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 21,417 1,018 $ 7,569 364 $ 3,595 173
Shares issued in reinvestment of
distributions 881 42 226 11 45 2
Shares redeemed (44,833) (2,132) (8,604) (412) (1,507) (72)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares
outstanding $(22,535) (1,072) $ (809) (37) $ 2,133 103
==================================================================================================================================
SMALL CAP OPPORTUNITIES FUND
- ---------------------------------------------------------------------------------------------------------------
CLASS A CLASS B
- ---------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares
- ---------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- ---------------------------------------------------------------------------------------------------------------
Shares sold $ 140,599 6,394 $ 30,608 1,361
Shares issued in reinvestment of distributions -- -- -- --
Shares redeemed (104,755) (4,944) (20,465) (1,007)
- ---------------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 35,844 1,450 $ 10,143 354
==============================================================================================================
YEAR ENDED OCTOBER 31, 1999*
- ---------------------------------------------------------------------------------------------------------------
Shares sold $ 106,407 7,140 $ 23,303 1,597
Shares issued in reinvestment of distributions -- -- -- --
Shares redeemed (105,627) (7,077) (26,664) (1,842)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 780 63 $ (3,361) (245)
==============================================================================================================
SMALL CAP OPPORTUNITIES FUND
- ------------------------------------------------------------------------------------------------------------
CLASS C CLASS I
- ------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares
- ------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- ------------------------------------------------------------------------------------------------------------
Shares sold $ 6,389 279 $125 6
Shares issued in reinvestment of distributions -- -- -- --
Shares redeemed (2,816) (136) -- --
- ------------------------------------------------------------------------------------------------------------
Net increase in Fund shares outstanding $ 3,573 143 $125 6
===========================================================================================================
YEAR ENDED OCTOBER 31, 1999*
- ------------------------------------------------------------------------------------------------------------
Shares sold $ 3,914 272 $ 20 1
Shares issued in reinvestment of distributions -- -- -- --
Shares redeemed (3,415) (234) -- --
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares outstanding $ 499 38 $ 20 1
===========================================================================================================
*For Class I shares, from commencement of offering on April 5, 1999.
74
CHASE VISTA FUNDS NOTES TO FINANCIAL STATEMENTS (continued)
SMALL CAP EQUITY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS I
- ------------------------------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares Amount Shares
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 129,124 4,981 $ 1,467 61 $ 73,921 2,768
Shares issued in reinvestment of
distributions 9,051 407 5,871 274 30,298 1,339
Shares redeemed (164,044) (6,381) (18,854) (776) (60,151) (2,309)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund
shares outstanding $ (25,869) (993) $(11,516) (441) $ 44,068 1,798
===================================================================================================================================
YEAR ENDED OCTOBER 31, 1999
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 77,551 3,459 $ 2,337 109 $ 19,682 865
Shares issued in reinvestment of
distributions 943 44 615 29 2,108 96
Shares redeemed (128,180) (5,719) (33,340) (1,554) (38,547) (1,681)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in Fund shares
outstanding $ (49,686) (2,216) $(30,388) (1,416) $(16,757) (720)
===================================================================================================================================
BALANCED FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A CLASS B CLASS C
- ------------------------------------------------------------------------------------------------------------------------------------
Amount Shares Amount Shares Amount Shares
- ------------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31, 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 24,774 1,585 $ 5,868 385 $ 868 57
Shares issued in reinvestment of
distributions 9,955 655 2,458 165 44 3
Shares redeemed (50,233) (3,238) (9,132) (601) (595) (39)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Fund shares
outstanding $(15,504) (998) $ (806) (51) $ 317 21
===================================================================================================================================
YEAR ENDED OCTOBER 31, 1999*
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold $ 36,973 2,289 $ 10,197 639 $1,417 88
Shares issued in reinvestment of
distributions 6,150 387 1,232 79 3 --
Shares redeemed (31,651) (1,952) (5,285) (331) (94) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in Fund shares
outstanding $ 11,472 724 $ 6,144 387 $1,326 82
===================================================================================================================================
*For Class C shares, from commencement of offering on November 20, 1998.
75
FINANCIAL HIGHLIGHTS
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS
Core Equity Fund
-----------------------------------------------------------------------
Class A Class B Class C
------------------- ------------------- --------------------
Year 8/12/99** Year 8/12/99** Year 8/13/99*
Ended Through Ended Through Ended Through
10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
-------- -------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period............. $10.47 $10.00 $10.46 $10.00 $10.46 $10.12
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income.......................... (0.02) -- (0.07) (0.01) (0.07) (0.01)
Net gains or losses on investments (both
realized and unrealized)....................... 0.59 0.47 0.56 0.47 0.56 0.35
------ ------ ------ ------ ------ ------
Total from investment operations............. 0.57 0.47 0.49 0.46 0.49 0.34
------ ------ ------ ------ ------ ------
Net asset value, end of period................... $11.04 $10.47 $10.95 $10.46 $10.95 $10.46
====== ====== ====== ====== ====== ======
Total return (1)................................. 5.44% 4.70% 4.68% 4.60% 4.68% 3.36%
Ratios/supplemental data:
Net assets, end of period (millions)........... $ 28 $ 7 $ 30 $ 6 $ 12 $ 2
Ratios to average net assets:#
Expenses....................................... 1.25% 1.21% 2.00% 1.94% 1.99% 1.94%
Net investment income.......................... (0.29%) (0.35%) (1.04%) (1.08%) (1.04%) (1.06%)
Expenses without waivers and reimbursements.... 1.99% 7.20%^ 2.45% 7.68%^ 2.44% 7.68%^
Net investment income without waivers
and reimbursements............................. (1.03%) (6.34%)^ (1.49%) (6.82%)^ (1.49%) (6.80%)^
=============================================================================================================================
* Commencement of offering class of shares.
** Commencement of operations.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
# Short periods have been annualized.
^ Restated.
See notes to financial statements.
76
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
Equity Growth Fund
--------------------------------------------------------------------
Class A Class B Class C
------------------- ------------------- -------------------
Year 8/12/99** Year 8/13/99* Year 8/20/99*
Ended Through Ended Through Ended Through
10/31/00 10/31/99 10/31/00 10/31/99 10/31/00 10/31/99
-------- -------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period............. $10.53 $10.00 $10.51 $10.00 $10.51 $ 9.96
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income.......................... (0.05) -- (0.11) (0.01) (0.11) (0.01)
Net gains or losses on investments
(both realized and unrealized)................. 0.04 0.53 0.02 0.52 0.02 0.56
------ ------ ------ ------ ------ ------
Total from investment operations............... (0.01) 0.53 (0.09) 0.51 (0.09) 0.55
------ ------ ------ ------ ------ ------
Net asset value, end of period................... $10.52 $10.53 $10.42 $10.51 $10.42 $10.51
====== ====== ====== ====== ====== ======
Total return (1)................................. (0.09%) 5.30% (0.86%) 5.10% (0.86%) 5.52%
Ratios/supplemental data:
Net assets, end of period (millions)........... $ 31 $ 8 $ 27 $ 11 $ 5 $ 1
Ratios to average net assets:#
Expenses....................................... 1.25% 1.21% 2.00% 1.93% 2.00% 1.95%
Net investment income.......................... (0.68%) (0.54%) (1.43%) (1.19%) (1.43%) (1.25%)
Expenses without waivers and reimbursements.... 1.99% 5.52%^ 2.51% 6.02%^ 2.47% 6.04%^
Net investment income without waivers
and reimbursements............................. (1.42%) (4.85%)^ (1.94%) (5.28%)^ (1.90% ) (5.34%)^
============================================================================================================================
* Commencement of offering class of shares.
** Commencement of operations.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
# Short periods have been annualized.
^ Restated.
See notes to financial statements.
77
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
Growth and Income Fund
-----------------------------------------------------------------------------------------
Class A Class B
------------------------------------------ ---------------------------------------------
Year Ended Year Ended
----------------------------------------- ----------------------------------------------
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96 10/31/00 10/31/99 10/31/98 10/31/97(1) 10/31/96
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Per share operating performance
Net asset value, beginning of period....$43.65 $43.24 $46.21 $39.21 $34.96 $43.25 $42.92 $45.96 $39.02 $34.81
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income................. 0.09@ 0.18@ 0.19@ 0.35@ 0.60 (0.11)@ 0.04@ (0.02)@ 0.13@ 0.37
Net gains or losses in securities
(both realized and unrealized)........ 3.31 5.07 3.59 10.18 5.96 3.26 5.04 3.54 10.13 5.98
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations.... 3.40 5.25 3.78 10.53 6.56 3.15 5.00 3.52 10.26 6.35
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment
income................................ 0.03 0.17 0.19 0.38 0.55 -- -- -- 0.17 0.38
Distributions from capital gains...... 6.31 4.67 6.56 3.15 1.76 6.31 4.67 6.56 3.15 1.76
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total dividends and distributions... 6.34 4.84 6.75 3.53 2.31 6.31 4.67 6.56 3.32 2.14
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period..........$40.71 $43.65 $43.24 $46.21 $39.21 $40.09 $43.25 $42.92 $45.96 $39.02
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total return (1)........................ 8.88% 12.82% 9.09% 28.84% 19.60% 8.32% 12.29% 8.52% 28.20% 19.02%
Ratios/supplemental data:
Net assets, end of period
(in millions).........................$1,131 $1,385 $1,499 $1,497 $1,591 $ 409 $ 528 $ 542 $ 489 $ 370
Ratios to average net assets:
Expenses.............................. 1.30% 1.26% 1.25% 1.27% 1.32% 1.80% 1.76% 1.75% 1.77% 1.81%
Net investment income................. 0.23% 0.41% 0.44% 0.82% 1.46% (0.27%) (0.09%) (0.06%) 0.31% 0.95%
Expenses without waivers and
reimbursements........................ 1.30% 1.26% 1.25% 1.27% 1.32% 1.80% 1.76% 1.75% 1.77% 1.81%
Net investment income without
waivers and reimbursements............ 0.23% 0.41% 0.44% 0.82% 1.46% (0.27%) (0.09%) (0.06%) 0.31% 0.95%
===================================================================================================================================
@ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
See notes to financial statements.
78
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
Growth and Income Fund
-------------------------------------------------------------------------------------
Class C Class I
------------------------------ ----------------------------------------------------
Year Ended 1/2/98** Year Ended 1/25/96**
------------------- Through ----------------------------------------- Through
10/31/00 10/31/99 10/31/98 10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period....... $42.34 $42.13 $41.64 $43.89 $43.43 $46.35 $39.26 $34.80
------ ------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income.................... (0.11)@ (0.03)@ (0.02)@ 0.26@ 0.35@ 0.43@ 0.52@ 0.47
Net gains or losses in securities
(both realized and unrealized)........... 3.18 4.94 0.68 3.33 5.12 3.50 10.20 4.46
------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations....... 3.07 4.91 0.66 3.59 5.47 3.93 10.72 4.93
------ ------ ------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment
income................................... -- 0.03 0.09 0.18 0.34 0.29 0.48 0.47
Distributions from capital gains......... 6.31 4.67 0.08 6.31 4.67 6.56 3.15 --
------ ------ ------ ------ ------ ------ ------ ------
Total dividends and distributions...... 6.31 4.70 0.17 6.49 5.01 6.85 3.63 0.47
------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period............. $39.10 $42.34 $42.13 $40.99 $43.89 $43.43 $46.35 $39.26
====== ====== ====== ====== ====== ====== ====== ======
Total return (1)........................... 8.31% 12.29% 1.55% 9.34% 13.30% 9.44% 29.37% 13.39%
Ratios/supplemental data:
Net assets, end of period (in millions).. $ 9 $ 10 $ 5 $ 5 $ 15 $ 24 $ 522 $ 28
Ratios to average net assets:#
Expenses................................. 1.80% 1.76% 1.72% 0.89% 0.85% 0.85% 0.86% 1.24%
Net investment income.................... (0.27%) (0.07%) (0.05%) 0.64% 0.80% 0.95% 1.21% 1.73%
Expenses without waivers and
reimbursements........................... 1.80% 1.76% 1.72% 0.93% 0.85% 0.85% 0.86% 1.24%
Net investment income without
waivers and reimbursements............... (0.27%) (0.07%) (0.05%) 0.60% 0.80% 0.95% 1.21% 1.73%
=================================================================================================================================
** Commencement of offering class of shares.
@ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
# Short periods have been annualized.
See notes to financial statements.
79
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
Capital Growth Fund
-----------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------- --------------------------------------------
Year Ended Year Ended
-------------------------------------------- --------------------------------------------
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96 10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period...... $42.85 $41.22 $46.76 $41.60 $35.65 $41.67 $40.38 $46.11 $41.21 $35.39
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income................... (0.14)@ (0.20)@ (0.12) (0.02)@ 0.15 (0.35)@ (0.40)@ (0.29) (0.23)@ (0.08)
Net gains or losses in securities
(both realized and unrealized).......... 10.11 5.75 (0.52) 10.13 7.27 9.79 5.61 (0.54) 10.01 7.25
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations...... 9.97 5.55 (0.64) 10.11 7.42 9.44 5.21 (0.83) 9.78 7.17
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment
income.................................. -- -- -- 0.15 0.12 -- -- -- 0.08 --
Distributions from capital gains........ 4.91 3.92 4.90 4.80 1.35 4.91 3.92 4.90 4.80 1.35
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total dividends and distributions..... 4.91 3.92 4.90 4.95 1.47 4.91 3.92 4.90 4.88 1.35
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period............
$47.91 $42.85 $41.22 $46.76 $41.60 $46.20 $41.67 $40.38 $46.11 $41.21
====== ====== ====== ===== ====== ====== ====== ====== ====== ======
Total return (1).......................... 25.81% 14.30% (1.60%) 26.47% 21.48% 25.21% 13.71% (2.08%) 25.85% 20.88%
Ratios/supplemental Data:
Net assets, end of period (in millions). $ 523 $ 577 $ 728 $ 839 $ 768 $ 318 $ 338 $ 405 $ 22 $ 334
Ratios to average net assets:
Expenses................................ 1.35% 1.30% 1.27% 1.31% 1.37% 1.85% 1.80% 1.77% 1.81% 1.87%
Net investment income................... (0.32%) (0.48%) (0.24%) (0.05%) 0.39% (0.82%) (0.98%) (0.74%) (0.56%) (0.21%)
Expenses without waivers and
reimbursements.......................... 1.35% 1.30% 1.27% 1.31% 1.37% 1.85% 1.80% 1.77% 1.81% 1.87%
Net investment income without
waivers and reimbursements.............. (0.32%) (0.48%) (0.24%) (0.05%) 0.39% (0.82%) (0.98%) (0.74) (0.56%) (0.21%)
===================================================================================================================================
@ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
See notes to financial statements.
80
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
Capital Growth Fund
--------------------------------------------------------------------------------------
Class C Class I
------------------------------ ----------------------------------------------------
Year Ended 1/2/98** Year Ended 1/25/96**
------------------- Through ---------------------------------------- Through
10/31/00 10/31/99 10/31/98 10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period ........ $41.31 $40.03 $42.81 $43.36 $41.53 $46.90 $41.65 $35.26
------ ------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ..................... (0.35)@ (0.39)@ (0.09) 0.04@ (0.05)@ 0.07 0.13@ 0.17
Net gains or losses in securities
(both realized and unrealized) ............ 9.71 5.59 (2.69) 10.27 5.80 (0.54) 10.17 6.34
------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations ........ 9.36 5.20 (2.78) 10.31 5.75 (0.47) 10.30 6.51
------ ------ ------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment income -- -- -- -- -- -- 0.25 0.12
Distributions from capital gains .......... 4.91 3.92 -- 4.91 3.92 4.90 4.80 --
------ ------ ------ ------ ------ ------ ------ ------
Total dividends and distributions ....... 4.91 3.92 -- 4.91 3.92 4.90 5.05 0.12
------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period .............. $45.76 $41.31 $40.03 $48.76 $43.36 $41.53 $46.90 $41.65
====== ====== ====== ====== ====== ====== ====== ======
Total return (1) ............................ 25.25% 13.81% (6.49%) 26.34% 14.71% (1.20%) 26.98% 18.13%
Ratios/supplemental data:
Net assets, end of period (in millions) ... $ 5 $ 6 $ 4 $ 15 $ 18 $ 52 $ 52 $ 32
Ratios to average net assets:#
Expenses .................................. 1.85% 1.80% 1.73% 0.94% 0.92% 0.91% 0.91% 1.25%
Net investment income ..................... (0.82%) (0.97%) (0.59%) 0.09% (0.11%) 0.11% 0.31% 0.81%
Expenses without waivers and reimbursements 1.85% 1.80% 1.73% 1.06% 0.99% 0.91% 0.91% 1.25%
Net investment income without waivers
and reimbursements ...................... (0.82%) (0.97%) (0.59%) (0.03%) (0.18%) 0.11% 0.31% 0.81%
==================================================================================================================================
** Commencement of offering class of shares.
@ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of
any front-end or deferred sales load.
# Short periods have been annualized.
See notes to financial statements.
81
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
Large Cap Equity Fund (2)
------------------------------------------------------------------------------------------
Class A Class B
-------------------------------------------- ---------------------------------------------
Year Ended 5/8/96** Year Ended 5/7/96**
----------------------------------- Through ------------------------------------ Through
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96 10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period .... $16.20 $15.09 $14.83 $13.25 $12.06 $16.10 $15.02 $14.76 $13.22 $12.06
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ................. 0.07 0.13 0.12 0.11 0.05 (0.02) 0.07 0.05 0.07 0.05
Net gains or losses in securities
(both realized and unrealized) ........ 1.08 2.06 1.92 3.45 1.21 1.08 2.03 1.92 3.42 1.19
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations .... 1.15 2.19 2.04 3.56 1.26 1.06 2.10 1.97 3.49 1.24
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment
income ................................ 0.07 0.13 0.12 0.09 0.07 0.01 0.07 0.05 0.06 0.08
Distributions from capital gains ...... 1.06 0.95 1.66 1.89 -- 1.06 0.95 1.66 1.89 --
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Total dividends and distributions ... 1.13 1.08 1.78 1.98 0.07 1.07 1.02 1.71 1.95 0.08
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period .......... $16.22 $16.20 $15.09 $14.83 $13.25 $16.09 $16.10 $15.02 $14.76 $13.22
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Total return (1) ........................ 7.34% 14.96% 15.15% 30.69% 10.84% 6.76% 14.38% 14.71% 30.15% 6.66%
Ratios/supplemental data:
Net assets, end of period (in millions) $ 65 $ 69 $ 50 $ 44 $ 8 $ 29 $ 35 $ 10 $ 5 $ 1
Ratios to average net assets:#
Expenses .............................. 0.96% 0.80% 0.85% 1.13% 1.38% 1.46% 1.29% 1.35% 1.59% 1.88%
Net investment income ................. 0.43% 0.80% 0.81% 0.61% 0.84% (0.06%) 0.28% 0.31% 0.15% 0.14%
Expenses without waivers, reimburse-
ments and earnings credits ............ 1.33% 1.30% 1.35% 1.63% 1.87% 1.83% 1.79% 1.85% 2.09% 2.38%
Net investment income without waivers,
reimbursements and earnings credits ... 0.06% 0.30% 0.31% 0.11% 0.35% (0.43%) (0.22%) (0.19%) (0.35%) (0.36%)
Portfolio turnover rate ................. 27% 70% 72% 72% 89% 27% 70% 72% 72% 89%
==================================================================================================================================
** Commencement of offering of class of shares.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
(2) Formerly known as the Vista Equity Fund.
# Short periods have been annualized.
See notes to financial statements.
82
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
Large Cap Equity Fund (2)
-------------------------------------------------------------------
Class C Class I
----------------- -----------------------------------------------
Year 11/11/98** Year Ended
Ended Through -----------------------------------------------
10/31/00 10/31/99 10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- ------- -------- --------
Per share operating performance
Net asset value, beginning of period ............... $16.03 $15.21 $16.27 $15.15 $14.85 $13.27 $12.24
------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income ............................ (0.01) 0.07 0.14 0.19 0.18 0.18 0.23
Net gains or losses in securities (both
realized and unrealized) ......................... 1.06 1.79 1.09 2.07 1.95 3.47 2.59
------ ------ ------ ------ ------ ------ ------
Total from investment operations ................. 1.05 1.86 1.23 2.26 2.13 3.65 2.82
------ ------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment income ............. 0.01 0.09 0.14 0.19 0.17 0.18 0.22
Distributions from capital gains ................. 1.06 0.95 1.06 0.95 1.66 1.89 1.57
------ ------ ------ ------ ------ ------ ------
Total dividends and distributions ............... 1.07 1.04 1.20 1.14 1.83 2.07 1.79
------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ..................... $16.01 $16.03 $16.30 $16.27 $15.15 $14.85 $13.27
====== ====== ====== ====== ====== ====== ======
Total return (1) ................................... 6.74% 12.62% 7.81% 15.37% 15.82% 31.50% 25.65%
Ratios/supplemental data:
Net assets, end of period (in millions) .......... $ 2 $ 1 $ 117 $ 147 $ 117 $ 107 $ 99
Ratios to average net assets:#
Expenses ......................................... 1.48% 1.29% 0.55% 0.42% 0.47% 0.50% 0.40%
Net investment income ............................ (0.10%) 0.24% 0.84% 1.18% 1.19% 1.32% 1.86%
Expenses without waivers, reimbursements and
earnings credits ................................. 1.83% 1.79% 0.89% 0.92% 0.97% 1.00% 0.96%
Net investment income without
waivers, reimbursements
and earnings credits ............................. (0.45%) (0.26%) 0.50% 0.68% 0.69% 0.82% 1.30%
Portfolio turnover rate ............................ 27% 70% 27% 70% 72% 72% 89%
==========================================================================================================================
** Commencement of offering of class of shares.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
(2) Formerly known as the Vista Equity Fund.
# Short periods have been annualized.
See notes to financial statements.
83
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
FINANCIAL HIGHLIGHTS (continued)
Focus Fund
--------------------------------------------------------
Class A Class B
---------------------------- ---------------------------
Year Ended 6/30/98* Year Ended 6/30/98*
------------------ Through ------------------ Through
10/31/00 10/31/99 10/31/98 10/31/00 10/31/99 10/31/98
-------- -------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period ................. $ 9.83 $ 9.40 $10.00 $ 9.77 $ 9.38 $10.00
------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income .............................. (0.08) 0.01@ 0.01 (0.12) (0.05)@ --
Net gains or losses in securities (both realized
and unrealized) .................................... 0.17 0.43 (0.61) 0.14 0.44 (0.62)
------ ------ ------ ------ ------ ------
Total from investment operations .................. 0.09 0.44 (0.60) 0.02 0.39 (0.62)
------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment income ............... -- 0.01 -- -- -- --
Distributions from capital gains ................... -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total dividends and distributions ................. -- 0.01 -- -- -- --
------ ------ ------ ------ ------ ------
Net asset value, end of period ....................... $ 9.92 $ 9.83 $ 9.40 $ 9.79 $ 9.77 $ 9.38
====== ====== ====== ====== ====== ======
Total return (1) ..................................... 0.92% 4.67% (6.00%) 0.20% 4.16% (6.20%)
Ratios/supplemental data:
Net assets, end of period (in millions) ............ $ 20 $ 17 $ 18 $ 28 $ 22 $ 18
Ratios to average net assets:#
Expenses ........................................... 1.25% 1.25% 1.25% 1.85% 1.84% 1.85%
Net investment income .............................. (0.69%) 0.07% 0.48% (1.29%) (0.51%) (0.15%)
Expenses without waivers, reimbursements and
earnings credits ................................... 1.70% 1.81% 2.05% 2.20% 2.30% 2.54%
Net investment income without waivers,
reimbursements and earnings credits ................ (1.14%) (0.49%) (0.32%) (1.64%) (0.97%) (0.84%)
Portfolio turnover rate .............................. 124% 173% 33% 124% 173% 33%
=======================================================================================================================
* Commencement of operations.
@ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
# Short periods have been annualized.
See notes for financial statements.
84
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
Focus Fund
-------------------------------------------------------------------
CLASS C CLASS I
------------------------------ ---------------------------------
Year Ended 6/30/98* Year Ended 6/30/98*
------------------- Through --------------------- Through
10/31/00 10/31/99 10/31/98 10/31/00 10/31/99 10/31/98
-------- -------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period .................. $ 9.76 $ 9.38 $10.00 $ 9.86 $ 9.40 $10.00
------- ------- ------ -------- ------- -------
Income from investment operations:
Net investment income ............................... (0.14) (0.05)@ -- (0.03) 0.03@ 0.02
Net gains or losses in securities
(both realized and unrealized) ..................... 0.17 0.43 (0.62) 0.15 0.45 (0.62)
------- ------- ------ -------- ------- -------
Total from investment operations .................. 0.03 0.38 (0.62) 0.12 0.48 (0.60)
------- ------- ------ -------- ------- -------
Distributions to shareholders from:
Dividends from net investment income ................ -- -- -- -- 0.02 --
Distributions from capital gains .................... -- -- -- -- -- --
------- ------- ------ -------- ------- -------
Total dividends and distributions ................. -- -- -- -- 0.02 --
------- ------- ------ -------- ------- -------
Net asset value, end of period ........................ $ 9.79 $ 9.76 $ 9.38 $ 9.98 $ 9.86 $ 9.40
======= ======= ====== ======== ======= =======
Total return (1) ...................................... 0.31% 4.05% (6.20%) 1.22% 5.05% (6.00%)
Ratios/supplemental data:
Net assets, end of period (in millions) ............. $ 7 $ 7 $ 4 $ --+ $ --+ $ --+
Ratios to average net assets: #
Expenses ............................................ 1.85% 1.84% 1.85% 1.00% 1.00% 1.00%
Net investment income ............................... (1.29%) (0.55%) (0.14%) (0.44%) 0.33% 0.78%
Expenses without waivers, reimbursements
and earnings credits .............................. 2.20% 2.29% 2.55% 1,500.37%^ 1007.71%^ 1.80%
Net investment income without waivers,
reimbursements and earnings credits ............... (1.64%) (1.00%) (0.84%) (1,499.81%)^ (1006.38%)^ (0.02%)
Portfolio turnover rate ............................... 124% 173% 33% 124% 173% 33%
===========================================================================================================================
* Commencement of operations.
@ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
# Short periods have been annualized.
+ Amounts round to less than one million.
^ Due to the size of net assets and fixed expenses, ratios may appear
disproportionate with other classes.
See notes to financial statements.
85
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
Equity Income Fund
-----------------------------------------------------
Class A
-----------------------------------------------------
Year Ended
-----------------------------------------------------
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period ...................................... $21.06 $19.07 $19.23 $15.98 $13.39
------ ------ ------ ------ ------
Income from investment operations:
Net investment income ................................................... -- 0.15 0.22 0.26 0.35
Net gains or losses in securities (both realized and unrealized) ........ 1.19 2.12 1.07 4.71 3.43
------ ------ ------ ------ ------
Total from investment operations ...................................... 1.19 2.27 1.29 4.97 3.78
------ ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment income .................................... -- 0.17 0.27 0.23 0.33
Distributions from capital gains ........................................ 2.40 0.11 1.18 1.49 0.86
------ ------ ------ ------ ------
Total dividends and distributions ..................................... 2.40 0.28 1.45 1.72 1.19
------ ------ ------ ------ ------
Net asset value, end of period ............................................ $19.85 $21.06 $19.07 $19.23 $15.98
====== ====== ====== ====== ======
Total return (1) .......................................................... 5.95% 11.92% 6.90% 33.66% 29.79%
Ratios/supplemental data:
Net assets, end of period (in millions) ................................. $ 46 $ 65 $ 80 $ 47 $ 17
Ratios to average net assets:
Expenses ................................................................ 1.45% 1.45% 1.46% 1.50% 1.50%
Net investment income ................................................... 0.02% 0.70% 1.20% 1.65% 2.41%
Expenses without waivers, reimbursements and earnings credits ........... 1.50% 1.45% 1.46% 1.70% 2.32%
Net investment income without waivers, reimbursements
and earnings credits .................................................... (0.03%) 0.70% 1.20% 1.45% 1.59%
Portfolio turnover rate ................................................... 45% 172% 160% 75% 114%
===================================================================================================================================
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
See notes to financial statements.
86
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
Equity Income Fund
--------------------------------------------------------------------------------------
Class B Class C
------------------------------------------------------ ----------------------------
Year Ended 5/7/96** Year Ended 1/8/98**
------------------------------------------ Through -------------------- Through
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96 10/31/00 10/31/99 10/31/98
-------- -------- -------- -------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period ....... $20.88 $18.92 $19.09 $15.92 $14.56 $20.87 $18.91 $18.62
------ ------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income .................... (0.12) 0.04 0.14 0.22 0.13 (0.12) 0.05 0.09
Net gains or losses in securities
(both realized and unrealized) ......... 1.20 2.10 1.05 4.62 1.38 1.19 2.09 0.31
------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations ....... 1.08 2.14 1.19 4.84 1.51 1.07 2.14 0.40
------ ------ ------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment income ..... -- 0.07 0.18 0.18 0.15 -- 0.07 0.11
Distributions from capital gains ......... 2.40 0.11 1.18 1.49 -- 2.40 0.11 --
------ ------ ------ ------ ------ ------ ------ ------
Total dividends and distributions ...... 2.40 0.18 1.36 1.67 0.15 2.40 0.18 0.11
------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ............. $19.56 $20.88 $18.92 $19.09 $15.92 $19.54 $20.87 $18.91
====== ====== ====== ====== ====== ====== ====== ======
Total return (1) ........................... 5.43% 11.31% 6.42% 32.87% 10.43% 5.38% 11.35% 2.13%
Ratios/supplemental data:
Net assets, end of period (in millions) .. $ 22 $ 28 $ 26 $ 15 $ 1 $ 5 $ 7 $ 4
Ratios to average net assets: #
Expenses ................................. 1.95% 1.94% 1.96% 2.11% 2.25% 1.96% 1.94% 1.95%
Net investment income .................... (0.49%) 0.20% 0.70% 1.06% 1.75% (0.50%) 0.20% 0.56%
Expenses without waivers, reimbursements
and earnings credits ..................... 2.00% 1.94% 1.96% 2.13% 2.75% 2.00% 1.94% 1.95%
Net investment income without
waivers, reimbursements and
earnings credits ....................... (0.54%) 0.20% 0.70% 1.04% 1.25% (0.54%) 0.20% 0.56%
Portfolio turnover rate .................... 45% 172% 160% 75% 114% 45% 172% 160%
====================================================================================================================================
** Commencement of offering class of shares.
(1) Total return figures do not include the effect of any front=end or deferred
sales load.
# Short periods have been annualized.
See notes to financial statements.
87
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA FUNDS FINANCIAL HIGHLIGHTS (continued)
Small Cap Opportunities Fund
------------------------------------------- -------------------------------------------
Class A Class B
------------------------------------------- -------------------------------------------
Year Ended 5/19/97* Year Ended 5/19/97*
------------------------------- Through ------------------------------- Through
10/31/00 10/31/99 10/31/98 10/31/97 10/31/00 10/31/99 10/31/98 10/31/97
-------- -------- -------- -------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period ....... $15.98 $12.79 $13.85 $10.00 $15.71 $12.67 $13.81 $10.00
------ ------ ------ ------ ------ ------ ------ ------
Income from investment operations:
Net investment income .................... (0.22)@ (0.15) (0.09) (0.04) (0.40)@ (0.27) (0.17) (0.06)
Net gains or losses in securities (both
realized and unrealized) ................ 8.78 3.34 (0.97) 3.89 8.65 3.31 (0.97) 3.87
------ ------ ------ ------ ------ ------ ------ ------
Total from investment operations ....... 8.56 3.19 (1.06) 3.85 8.25 3.04 (1.14) 3.81
------ ------ ------ ------ ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment income ..... -- -- -- -- -- -- -- --
Distributions from capital gains ......... -- -- -- -- -- -- -- --
------ ------ ------ ------ ------ ------ ------ ------
Total dividends and distributions ...... -- -- -- -- -- -- -- --
------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of period ............. $24.54 $15.98 $12.79 $13.85 $23.96 $15.71 $12.67 $13.81
====== ====== ====== ====== ====== ====== ====== ======
Total return (1) ........................... 53.57% 24.94% (7.65%) 38.50% 52.51% 23.99% (8.25%) 38.10%
Ratios/supplemental data:
Net assets, end of period (in millions) .. $ 154 $ 78 $ 62 $ 43 $ 110 $ 66 $ 57 $ 38
Ratios to average net assets: #
Expenses ................................. 1.50% 1.49% 1.50% 1.49% 2.20% 2.23% 2.24% 2.24%
Net investment income .................... (0.99%) (0.95%) (0.91%) (1.16%) (1.69%) (1.69%) (1.65%) (1.93%)
Expenses without waivers, reimbursements
and earnings credits ..................... 1.76% 1.89% 1.83% 2.38% 2.26% 2.39% 2.33% 2.88%
Net investment income without waivers,
reimbursements and earnings credits ...... (1.25%) (1.35%) (1.24%) (2.05%) (1.75%) (1.85%) (1.74%) (2.57%)
Portfolio turnover rate .................... 87% 92% 68% 7% 87% 92% 68% 7%
===================================================================================================================================
* Commencement of operations.
@ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
# Short periods have been annualized.
See notes to financial statements.
88
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA FUNDS SIDEBAR
Small Cap Opportunities Fund
------------------------------ ------------------
Class C Class I
------------------------------ ------------------
Year Ended 1/7/98** Year 4/5/99**
------------------- Through Through Through
10/31/00 10/31/99 10/31/98 10/31/00 10/31/99
-------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period .......................... $15.69 $12.66 $13.17 $15.98 $14.11
------ ------ ------ ------ ------
Income from investment operations:
Net investment income ....................................... (0.35)@ (0.26) (0.08) (0.13)@ (0.05)
Net gains or losses in securities (both
realized and unrealized) ................................... 8.59 3.29 (0.43) 8.80 1.92
------ ------ ------ ------ ------
Total from investment operations .......................... 8.24 3.03 (0.51) 8.67 1.87
------ ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment income ........................ -- -- -- -- --
Distributions from capital gains ............................ -- -- -- -- --
------ ------ ------ ------ ------
Total dividends and distributions ......................... -- -- -- -- --
------ ------ ------ ------ ------
Net asset value, end of period ................................ $23.93 $15.69 $12.66 $24.65 $15.98
====== ====== ====== ====== ======
Total return (1) .............................................. 52.52% 23.93% (3.87%) 54.26% 13.25%
Ratios/supplemental data:
Net assets, end of period (in millions) ..................... $ 14 $ 6 $ 5 $ --+ $ --+
Ratios to average net assets: #
Expenses .................................................... 2.20% 2.23% 2.24% 1.10% 1.91%
Net investment income ....................................... (1.69%) (1.69%) (1.55%) (0.59%) (0.96%)
Expenses without waivers, reimbursements
and earnings credits ....................................... 2.26% 2.39% 2.29% 15.48%^ 34.70%^
Net investment income without waivers,
reimbursements and earnings credits ........................ (1.75%) (1.85%) (1.60%) (14.97%)^ (33.75%)^
Portfolio turnover rate ....................................... 87% 92% 68% 87% 92%
========================================================================================================================
** Commencement of offering class of shares. @ Calculated based upon average
shares outstanding.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
# Short periods have been annualized.
+ Amounts round to less than one million.
^ Due to the size of net assets and fixed expenses, ratios may appear
disproportionate with other classes.
See notes to financial statements.
89
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA SIDEBAR
Small Cap Equity Fund
-----------------------------------------------------
Class A
-----------------------------------------------------
Year Ended
-----------------------------------------------------
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period ..................................... $22.77 $20.40 $23.57 $19.19 $15.07
------ ------ ------ ------ ------
Income from investment operations:
Net investment income .................................................. (0.20)@ (0.13)@ (0.11) (0.05) 0.01
Net gains or losses in securities
(both realized and unrealized) ........................................ 7.97 2.67 (2.42) 4.72 4.32
------ ------ ------ ------ ------
Total from investment operations ..................................... 7.77 2.54 (2.53) 4.67 4.33
------ ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment income ................................... -- -- -- -- 0.03
Distributions from capital gains ....................................... 2.65 0.17 0.64 0.29 0.18
------ ------ ------ ------ ------
Total dividends and distributions .................................... 2.65 0.17 0.64 0.29 0.21
------ ------ ------ ------ ------
Net asset value, end of period ........................................... $27.89 $22.77 $20.40 $23.57 $19.19
====== ====== ====== ====== ======
Total return (1) ......................................................... 37.10% 12.49% (10.93%) 24.61% 29.06%
Ratios/supplemental data:
Net assets, end of period (in millions) ................................ $ 93 $ 98 $ 133 $ 174 $ 145
Ratios to average net assets:
Expenses ............................................................... 1.44% 1.40% 1.38% 1.45% 1.50%
Net investment income .................................................. (0.77%) (0.59%) (0.43%) (0.23%) 0.03%
Expenses without waivers,
reimbursements and earnings credits ................................... 1.44% 1.40% 1.38% 1.45% 1.52%
Net investment income without waivers,
reimbursements and earnings credits ................................... (0.77%) (0.59%) (0.43%) (0.23%) 0.01%
Portfolio turnover rate .................................................. 75% 92% 74% 55% 78%
===================================================================================================================================
@ Calculated based upon average shares outstanding.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
See notes to financial statements.
90
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA SIDEBAR
Small Cap Equity Fund
------------------------------------------------------------
Class B
------------------------------------------------------------
Year Ended
------------------------------------------------------------
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period ..... $ 22.06 $ 19.91 $ 23.19 $ 19.00 $ 15.01
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income .................. (0.37)@ (0.28)@ (0.31) (0.27) (0.08)
Net gain or losses in securities
(both realized and unrealized) ....... 7.69 2.60 (2.33) 4.75 4.25
-------- -------- -------- -------- --------
Total from investment operations ..... 7.32 2.32 (2.64) 4.48 4.17
-------- -------- -------- -------- --------
Distributions to shareholders from:
Dividends from net investment income ... -- -- -- -- --
Distributions from capital gains ....... 2.65 0.17 0.64 0.29 0.18
-------- -------- -------- -------- --------
Total dividends and distributions .... 2.65 0.17 0.64 0.29 0.18
-------- -------- -------- -------- --------
Net asset value, end of period ........... $ 26.73 $ 22.06 $ 19.91 $ 23.19 $ 19.00
======== ======== ======== ======== ========
Total return (1) ......................... 36.17% 11.69% (11.60%) 23.84% 28.04%
Ratios/supplemental data:
Net assets, end of period (in millions) $ 57 $ 57 $ 80 $ 100 $ 73
Ratios to average net assets: #
Expenses ............................... 2.17% 2.12% 2.10% 2.16% 2.22%
Net investment income .................. (1.50%) (1.31%) (1.15%) (0.94%) (0.68%)
Expenses without waivers, reimbursements
and earnings credits ................... 2.17% 2.12% 2.10% 2.16% 2.25%
Net investment income without waivers,
reimbursements and earnings credits .... (1.50%) (1.31%) (1.15%) (0.94%) (0.71%)
Portfolio turnover rate .................. 75% 92% 74% 55% 78%
=============================================================================================================
Small Cap Equity Fund
------------------------------------------------------------
Class I
------------------------------------------------------------
Year Ended 5/7/96**
----------------------------------------------- Through
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period ..... $ 23.10 $ 20.59 $ 23.71 $ 19.22 $ 18.44
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income .................. (0.05)@ (0.02)@ (0.02) 0.03 0.02
Net gain or losses in securities
(both realized and unrealized) ....... 8.12 2.70 (2.46) 4.75 0.76
-------- -------- -------- -------- --------
Total from investment operations ..... 8.07 2.68 (2.48) 4.78 0.78
-------- -------- -------- -------- --------
Distributions to shareholders from:
Dividends from net investment income ... -- -- -- -- --
Distributions from capital gains ....... 2.65 0.17 0.64 0.29 --
-------- -------- -------- -------- --------
Total dividends and distributions .... 2.65 0.17 0.64 0.29 --
-------- -------- -------- -------- --------
Net asset value, end of period ........... $ 28.52 $ 23.10 $ 20.59 $ 23.71 $ 19.22
======== ======== ======== ======== ========
Total return (1) ......................... 37.94% 13.06% (10.64%) 25.15% 4.23%
Ratios/supplemental data:
Net assets, end of period (in millions) $ 383 $ 269 $ 254 $ 307 $ 52
Ratios to average net assets:
Expenses ............................... 0.88% 0.88% 1.04% 1.10% 1.10%
Net investment income .................. (0.20%) (0.07%) (0.09%) 0.13% 0.27%
Expenses without waivers, reimbursements
and earnings credits ................... 1.13% 1.13% 1.13% 1.14% 1.27%
Net investment income without waivers,
reimbursements and earnings credits .... (0.45%) (0.32%) (0.18%) 0.09% 0.10%
Portfolio turnover rate .................. 75% 92% 74% 55% 78%
========================================================================================================
** Commencement of offering of class of shares. @ Calculated based upon average
shares outstanding.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
# Short periods have been annualized.
See notes to financial statements.
91
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA SIDEBAR
Balanced Fund
-----------------------------------------------------
Class A
-----------------------------------------------------
Year Ended
-----------------------------------------------------
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
-------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period.......................................... $16.24 $15.44 $15.41 $13.83 $12.45
------ ------ ------ ------ ------
Income from investment operations:
Net investment income....................................................... 0.32 0.35 0.38 0.39 0.35
Net gains or losses in securities (both realized and unrealized)............ 0.36 1.42 1.02 2.39 1.69
------ ------ ------ ------ ------
Total from investment operations.......................................... 0.68 1.77 1.40 2.78 2.04
----- ------ ------ ------ ------
Distributions to shareholders from:
Dividends from net investment income........................................ 0.30 0.35 0.39 0.39 0.34
Distributions from capital gains............................................ 1.28 0.62 0.98 0.81 0.32
------ ------ ------ ------ ------
Total dividends and distributions......................................... 1.58 0.97 1.37 1.20 0.66
------ ------ ------ ------ ------
Net asset value, end of period................................................ $15.34 $16.24 $15.44 $15.41 $13.83
====== ====== ====== ====== ======
Total return (1).............................................................. 4.41% 11.71% 9.60% 21.48% 16.89%
Ratios/supplemental data:
Net assets, end of period (in millions)..................................... $ 90 $ 112 $ 95 $ 93 $ 55
Ratios to average net assets:
Expenses.................................................................... 1.27% 1.25% 1.25% 1.25% 1.25%
Net investment income....................................................... 1.98% 2.27% 2.51% 2.91% 2.97%
Expenses without waivers, reimbursements and earnings credits............... 1.49% 1.44% 1.44% 1.52% 1.78%
Net investment income without waivers, reimbursements and earnings credits 1.76% 2.08% 2.32% 2.64% 2.44%
Portfolio turnover rate 127% 86% 94% 136% 149%
===================================================================================================================================
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
See notes to financial statements.
92
FINANCIAL HIGHLIGHTS (continued)
CHASE VISTA SIDEBAR
Balanced Fund
-----------------------------------------------------------------------------
Class B Class C
----------------------------------------------------- ----------------------
Year Ended Year 11/20/98**
----------------------------------------------------- Ended Through
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96 10/31/00 10/31/99
-------- -------- -------- -------- -------- -------- --------
Per share operating performance
Net asset value, beginning of period...... $15.94 $15.19 $15.21 $13.70 $12.36 $15.89 $15.59
-------- -------- -------- -------- -------- -------- --------
Income from investment operations:
Net investment income................... 0.20 0.25 0.28 0.32 0.28 0.21 0.24
Net gains or losses in securities
(both realized and unrealized)......... 0.36 1.37 1.00 2.33 1.66 0.35 0.97
-------- -------- -------- -------- -------- -------- --------
Total from investment operations...... 0.56 1.62 1.28 2.65 1.94 0.56 1.21
-------- -------- -------- -------- -------- -------- --------
Distributions to shareholders from:
Dividends from net investment income.... 0.19 0.25 0.32 0.33 0.28 0.20 0.29
Distributions from capital gains........ 1.28 0.62 0.98 0.81 0.32 1.28 0.62
-------- -------- -------- -------- -------- -------- --------
Total dividends and distributions..... 1.47 0.87 1.30 1.14 0.60 1.48 0.91
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of period............ $15.03 $15.94 $15.19 $15.21 $13.70 $14.97 $15.89
======== ======== ======== ======== ======== ======== ========
Total return (1).......................... 3.70% 10.88% 8.89% 20.55% 16.10% 3.69% 7.95%
Ratios/supplemental data:
Net assets, end of period (in millions). $ 28 $ 31 $ 23 $ 15 $ 10 $ 2 $ 1
Ratios to average net assets: #
Expenses................................ 1.90% 1.93% 1.93% 2.04% 2.00% 1.90% 2.06%
Net investment income................... 1.33% 1.56% 1.81% 2.26% 2.21% 1.31% 1.67%
Expenses without waivers,
reimbursements and earnings credits..... 1.91% 1.93% 1.93% 2.06% 2.29% 1.91% 2.06%
Net investment income without waivers,
reimbursements and earnings credits.... 1.32% 1.56% 1.81% 2.24% 1.92% 1.30% 1.67%
Portfolio turnover rate................... 127% 86% 94% 136% 149% 127% 86%
==========================================================================================================================
** Commencement of offering of class of shares.
(1) Total return figures do not include the effect of any front-end or deferred
sales load.
# Short periods have been annualized.
See notes to financial statements.
93
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
Mutual Fund Group
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments as presented, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of Chase Vista Core
Equity Fund, Chase Vista Equity Growth Fund, Chase Vista Growth and Income Fund,
Chase Vista Capital Growth Fund, Chase Vista Large Cap Equity Fund, Chase Vista
Focus Fund, Chase Vista Equity Income Fund, Chase Vista Small Cap Opportunities
Fund, Chase Vista Small Cap Equity Fund and Chase Vista Balanced Fund (separate
portfolios of Mutual Fund Group, hereafter referred to as the "Trust") at
October 31, 2000, the results of each of their operations for the year then
ended, the changes in each of their net assets for each of the two years in the
period then ended (for the year ended October 31, 2000 and for the period August
12, 1999 through October 31, 1999 for the Chase Vista Core Equity Fund and Chase
Vista Equity Growth Fund) and the financial highlights for each of the periods
presented, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Trust's management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States of America, which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at October 31, 2000 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
December 11, 2000
See notes to financial statements.
94
GROWTH AND INCOME PORTFOLIO
Portfolio of Investments
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- 93.7%
- ---------------------------------------------------------------------------------
COMMON STOCK -- 92.8%
Aerospace -- 1.2%
387 Boeing Co. $ 26,243
Automotive -- 2.7%
1,601 Ford Motor Co. 41,826
282 General Motors Corp. 17,538
----------
59,364
Banking -- 5.7%
1,035 Bank of New York Co., Inc. 59,577
1,410 Wells Fargo Co. 65,301
----------
124,878
Chemicals -- 2.2%
346 Dow Chemical Co. 10,593
859 E.I. DuPont de Nemours Co. 38,991
----------
49,584
Computers/Computer Hardware -- 0.9%
200 Hewlett-Packard Co. 9,288
106 International Business Machines Corp. 10,441
----------
19,729
Consumer Products -- 0.7%
428 Philip Morris Companies, Inc. 15,686
Diversified -- 3.1%
800 General Electric Co. 43,866
416 Tyco International LTD (Bermuda) 23,582
----------
67,448
Financial Services -- 17.3%
1,257 American Express Co. 75,402
2,345 Citigroup, Inc. 123,419
313 Fannie Mae 24,124
288 J.P. Morgan & Co. 47,664
696 Merrill Lynch & Co., Inc. 48,720
671 Morgan Stanley Dean Witter & Co. 53,858
94 State Street Corp. 11,775
----------
384,962
Food/Beverage Products -- 2.4%
500 Anheuser-Busch Companies, Inc. 22,875
270 PepsiCo, Inc. 13,078
339 Sysco Corp. 17,692
----------
53,645
Insurance -- 7.8%
1,399 American International Group, Inc. 137,097
264 Marsh & McLennan Companies, Inc. 34,479
----------
171,576
Machinery & Engineering Equipment -- 1.7%
600 Caterpillar, Inc. 21,038
375 Dover Corp. 15,914
----------
36,952
Manufacturing -- 0.9%
353 Honeywell International, Inc. 18,996
See notes to financial statements.
95
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- Continued
- ---------------------------------------------------------------------------------
Metals/Mining -- 0.5%
419 Alcoa, Inc. $ 12,026
Multi-Media -- 4.1%
1,013 The Walt Disney Co. 36,278
146 Time Warner, Inc. 11,083
771 Viacom, Inc., Class B* 43,861
----------
91,222
Office/Business Equipment -- 0.6%
1,450 Xerox Corp. 12,234
Oil & Gas -- 12.6%
213 BP Amoco PLC, ADR (United Kingdom) 10,860
603 Chevron Corp. 49,511
1,283 Exxon Mobil Corp. 114,457
450 Halliburton Co. 16,678
1,077 Royal Dutch Petroleum Co., N.Y. Registered Shares
(Netherlands) 63,971
303 Schlumberger LTD 23,066
----------
278,543
Paper/Forest Products -- 2.0%
470 International Paper Co. 17,230
308 Weyerhaeuser Co. 14,457
335 Willamette Industries 12,165
----------
43,852
Pharmaceuticals -- 7.8%
836 Abbott Laboratories 44,151
564 American Home Products Corp. 35,814
214 Eli Lilly & Co. 19,126
333 Pfizer, Inc. 14,381
1,065 Pharmacia Corp. 58,577
----------
172,049
Retailing -- 1.2%
40 Kohls Corp.* 2,168
868 Target Corp. 23,978
----------
26,146
Semi-Conductors -- 2.8%
394 Altera Corp.* 16,129
350 Intel Corp. 15,750
591 Texas Instruments, Inc. 28,996
----------
60,875
Telecommunications -- 8.7%
719 AT&T Corp. 16,675
1,109 BellSouth Corp. 53,579
627 SBC Communications, Inc. 36,170
1,291 Verizon Communications 74,659
433 WorldCom, Inc.* 10,272
----------
191,355
Telecommunications Equipment -- 1.8%
1,054 Motorola, Inc. 26,284
297 Nortel Networks Corp. (Canada) 13,514
----------
39,798
See notes to financial statements.
96
GROWTH AND INCOME PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- Continued
- ---------------------------------------------------------------------------------
Utilities -- 4.1%
202 Dominion Resources, Inc. $ 12,032
400 DQE, Inc. 13,975
284 Duke Energy Corp. 24,548
491 Enron Corp. 40,293
------------
90,848
- ---------------------------------------------------------------------------------
Total Common Stock 2,048,011
(Cost $1,637,799)
------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK -- 0.9%
Telecommunications -- 0.9%
250 Qwest Trends Trust, 5.75%, 11/17/03 20,219
(Cost $10,438)
- ---------------------------------------------------------------------------------
Total Long-Term Investments 2,068,230
(Cost $1,648,237)
- ---------------------------------------------------------------------------------
Short-Term Investment -- 6.2%
- ---------------------------------------------------------------------------------
Principal
Amount
REPURCHASE AGREEMENT -- 6.2%
$137,574 Greenwich Capital Markets, Inc., Tri Party, 6.55%,
due 11/01/00, (Dated 10/31/00, Proceeds
$137,599, Secured by GNMA, $140,079, 6.00%
through 11.50%, due 04/15/13 through 10/15/30;
Market Value $140,328) 137,574
(Cost $137,574)
- ---------------------------------------------------------------------------------
Total Investments -- 99.9% $2,205,804
(Cost $1,785,811)
- ---------------------------------------------------------------------------------
See notes to financial statements.
97
CAPITAL GROWTH PORTFOLIO
Portfolio of Investments
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- 96.4%
- ---------------------------------------------------------------------------------
COMMON STOCK -- 96.4%
Advertising -- 1.5%
335 True North Communications, Inc. $12,625
Apparel -- 1.1%
350 Jones Apparel Group, Inc.* 9,734
Banking -- 3.8%
290 Cullen/Frost Bankers, Inc. 9,661
210 TCF Financial Corp. 8,492
250 Zions Bancorp. 14,359
--------
32,512
Biotechnology -- 1.2%
240 Chiron Corp.* 10,395
Broadcasting/Cable -- 1.1%
200 AT&T Corp. -- Liberty Media Group, Class A* 3,600
145 Univision Communications, Inc., Class A* 5,546
--------
9,146
Business Services -- 8.1%
390 ACNielsen Corp.* 9,336
256 Acxiom Corp.* 10,292
225 Affiliated Computer Services, Inc., Class A* 12,530
450 Concord EFS, Inc.* 18,590
250 Manpower, Inc. 8,703
200 Sungard Data Systems, Inc.* 10,225
--------
69,676
Chemicals -- 2.3%
265 Cytec Industries, Inc.* 9,176
135 FMC Corp.* 10,260
--------
19,436
Computer Software -- 2.3%
340 Rational Software Corp.* 20,294
Construction -- 2.3%
190 American Standard Companies, Inc.* 8,716
346 Lennar Corp. 11,099
--------
19,815
Electronics/Electrical Equipment -- 11.2%
225 Amphenol Corp., Class A* 14,456
350 APW LTD.* 16,166
126 Coherent, Inc.* 4,386
200 PerkinElmer, Inc. 23,899
80 Sanmina Corp.* 9,145
475 Sensormatic Electronics Corp.* 8,550
150 Symbol Technologies, Inc. 6,816
450 Vishay Intertechnology, Inc.* 13,500
--------
96,918
Entertainment/Leisure -- 2.3%
350 Harrah's Entertainment, Inc.* 10,019
800 Park Place Entertainment Corp.* 10,200
--------
20,219
See notes to financial statements.
98
CAPITAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- Continued
- ---------------------------------------------------------------------------------
Financial Services -- 2.7%
230 A.G. Edwards, Inc. $11,673
180 Lehman Brothers Holdings, Inc. 11,610
--------
23,283
Food/Beverage Products -- 1.2%
300 Pepsi Bottling Group, Inc. 10,388
Health Care/Health Care Services -- 6.8%
200 Cytyc Corp.* 11,875
250 Dentsply International, Inc. 8,672
900 Health Management Associates, Inc., Class A* 17,831
350 Oxford Health Plans, Inc.* 11,813
185 Stryker Corp. 8,718
--------
58,909
Insurance -- 5.2%
450 Ace LTD (Bermuda) 17,662
200 AXA Financial, Inc. 10,813
230 Radian Group, Inc. 16,301
--------
44,776
Machinery & Engineering Equipment -- 1.7%
210 Dover Corp. 8,912
140 Zebra Technologies Corp., Class A* 6,134
--------
15,046
Oil & Gas -- 8.6%
470 Anadarko Petroleum Corp. 30,103
65 BJ Services Co.* 3,408
240 Cooper Cameron Corp.* 13,080
475 Global Marine, Inc.* 12,588
130 Nicor, Inc. 4,591
375 Tosco Corp. 10,734
--------
74,504
Paper/Forest Products -- 1.1%
250 Willamette Industries 9,078
Pharmaceuticals -- 8.7%
100 Alza Corp.* 8,094
520 Biovail Corp. International (Canada)* 21,872
140 Forest Laboratories Inc., Class A* 18,550
160 Medimmune, Inc.* 10,460
85 Sepracor, Inc.* 5,791
160 Watson Pharmaceuticals, Inc.* 10,010
--------
74,777
Pipelines -- 3.3%
125 Columbia Energy Group 8,992
220 El Paso Energy Corp. 13,791
100 National Fuel Gas Co. 5,363
--------
28,146
Printing & Publishing -- 0.9%
400 A.H. Belo Corp., Class A 7,675
Real Estate Investment Trust -- 1.2%
130 Equity Residential Properties Trust 6,118
206 ProLogis Trust 4,326
--------
10,444
See notes to financial statements.
99
CAPITAL GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- Continued
- ---------------------------------------------------------------------------------
Restaurants/Food Services -- 1.9%
415 Brinker International, Inc.* $ 16,289
Retailing -- 1.6%
425 BJ's Wholesale Club, Inc.* 13,998
Semi-Conductors -- 6.0%
305 Altera Corp.* 12,486
350 Atmel Corp.* 5,228
413 Microchip Technology, Inc.* 13,045
110 Veeco Instruments, Inc.* 7,277
200 Vitesse Semiconductor Corp.* 13,988
---------
52,024
Shipping/Transportation -- 0.9%
150 C.H. Robinson Worldwide, Inc. 8,203
Telecommunications -- 2.0%
145 U.S. Cellular Corp.* 9,280
170 Western Wireless Corp., Class A* 8,075
---------
17,355
Telecommunications Equipment -- 1.6%
125 Comverse Technology, Inc.* 13,969
Utilities -- 3.8%
265 AGL Resources, Inc. 5,399
300 Alliant Energy Corp. 9,094
200 American Water Works, Inc. 4,875
200 Energy East Corp. 4,038
350 Scana Corp. 9,275
---------
32,681
- ---------------------------------------------------------------------------------
Total Long-Term Investments 832,315
(Cost $612,053)
- ---------------------------------------------------------------------------------
Short-Term Investment -- 5.0%
- ---------------------------------------------------------------------------------
Principal
Amount
REPURCHASE AGREEMENT -- 5.0%
$43,338 Greenwich Capital Markets, Inc., Tri Party, 6.55%,
due 11/01/00, (Dated 10/31/00, Proceeds $43,346,
Secured by U.S. Government Agency Obligations,
$44,715, 6.50% through 6.75%, due 06/18/21
through 09/15/23; Market Value $44,205) 43,338
(Cost $43,338)
- ---------------------------------------------------------------------------------
Total Investments -- 101.4% $875,653
(Cost $655,391)
- ---------------------------------------------------------------------------------
INDEX:
* -- Non-income producing security.
ADR -- American Depositary Receipt.
GNMA -- Government National Mortgage Association
See notes to financial statements.
100
GROWTH AND INCOME AND CAPITAL GROWTH PORTFOLIOS
Statement of Assets and Liabilities As of October 31, 2000
(Amounts in Thousands)
Growth and
Income Capital Growth
Portfolio Portfolio
- ----------------------------------------------------------------------------------------
ASSETS:
Investment securities, at value (Note 1) .......... $2,205,804 $875,653
Other assets ...................................... 7 3
Receivables:
Interest and dividends ........................ 2,695 329
- ----------------------------------------------------------------------------------------
Total Assets ................................ 2,208,506 875,985
- ----------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased ............... -- 11,696
Accrued liabilities: (Note 2)
Investment advisory fees ...................... 727 282
Administration fees ........................... 91 35
Custodian fees ................................ 24 11
Other ......................................... 314 230
- ----------------------------------------------------------------------------------------
Total Liabilities ........................... 1,156 12,254
- ----------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
BENEFICIAL INTERESTS ................................ $2,207,350 $863,731
- ----------------------------------------------------------------------------------------
Cost of investments ............................... $1,785,811 $655,391
- ----------------------------------------------------------------------------------------
See notes to financial statements.
101
GROWTH AND INCOME AND CAPITAL GROWTH PORTFOLIOS
Statement of Operations For the year ended October 31, 2000
(Amounts in Thousands)
Growth and
Income Capital Growth
Portfolio Portfolio
- ----------------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividend .......................................... $ 32,526 $ 6,696
Interest .......................................... 3,885 2,388
Foreign taxes withheld ............................ (246) --
- ----------------------------------------------------------------------------------------
Total investment income ..................... 36,165 9,084
- ----------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees .......................... 9,573 3,572
Administration fees ............................... 1,197 447
Custodian fees .................................... 136 72
Accounting fees ................................... 39 30
Professional fees ................................. 70 52
Trustees' fees .................................... 55 20
Other ............................................. 125 28
- ----------------------------------------------------------------------------------------
Total expenses .............................. 11,195 4,221
- ----------------------------------------------------------------------------------------
Less earnings credits (Note 2B) ................... 55 23
- ----------------------------------------------------------------------------------------
Net expenses ................................ 11,140 4,198
- ----------------------------------------------------------------------------------------
Net investment income ................. 25,025 4,886
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments .................. 322,821 168,249
Change in net unrealized appreciation/
depreciation of investments ....................... (123,018) 39,433
- ----------------------------------------------------------------------------------------
Net realized and unrealized gain on investments ... 199,803 207,682
- ----------------------------------------------------------------------------------------
Net increase in net assets from operations ........ $ 224,828 $212,568
- ----------------------------------------------------------------------------------------
See notes to financial statements.
102
GROWTH AND INCOME AND CAPITAL GROWTH PORTFOLIOS
Statement of Changes in Net Assets For the year ended October 31,
(Amounts in Thousands)
Growth and
Income Capital Growth
Portfolio Portfolio
- ------------------------------------------------------------------------------------------------
2000 1999 2000 1999
- ------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN
NET ASSETS FROM OPERATIONS:
Net investment income ........... $ 25,025 $ 34,082 $ 4,886 $ 3,754
Net realized gain on
investments ..................... 322,821 426,148 168,249 185,113
Change in net unrealized
appreciation/depreciation of
investments ..................... (123,018) (86,911) 39,433 (28,226)
- ------------------------------------------------------------------------------------------------
Increase in net assets
from operations ............... 224,828 373,319 212,568 160,641
- ------------------------------------------------------------------------------------------------
TRANSACTIONS IN INVESTORS'
BENEFICIAL INTERESTS:
Contributions ................... 147,832 480,886 469,249 877,944
Withdrawals ..................... (789,064) (982,596) (759,382) (1,288,947)
- ------------------------------------------------------------------------------------------------
Net decrease from
transactions in investors'
beneficial interests .......... (641,232) (501,710) (290,133) (411,003)
- ------------------------------------------------------------------------------------------------
Total decrease in net assets (416,404) (128,391) (77,565) (250,362)
NET ASSETS:
Beginning of period ............. 2,623,754 2,752,145 941,296 1,191,658
- ------------------------------------------------------------------------------------------------
End of period ................... $ 2,207,350 $ 2,623,754 $ 863,731 $ 941,296
- ------------------------------------------------------------------------------------------------
See notes to financial statements.
103
GROWTH AND INCOME AND CAPITAL GROWTH PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Growth and Income Portfolio ("GIP") and Capital Growth Portfolio ("CGP"), (the
"Portfolios") are separately registered under the Investment Company Act of
1940, as amended, as non-diversified, open end management investment companies
organized as trusts under the laws of the State of New York. Each declaration of
trust permits the Trustees to issue beneficial interests in the respective
Portfolios.
THE FOLLOWING IS A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE
PORTFOLIOS:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
A. VALUATION OF INVESTMENTS -- Equity securities, purchased options and
futures are valued at the last sale price on the exchange on which they are
primarily traded, including the NASDAQ National Market. Securities for
which sale prices are not available and other over-the-counter securities
are valued at the last quoted bid price. Bonds and other fixed income
securities (other than short-term obligations), including listed issues,
are valued on the basis of valuations supplied by pricing services or by
matrix pricing systems of a major dealer in bonds. Short-term debt
securities with 61 days or more to maturity at time of purchase are valued,
through the 61st day prior to maturity, at market value based on quotations
obtained from market makers or other appropriate sources; thereafter, the
value on the 61st day is amortized on a straight-line basis over the
remaining number of days to maturity. Short-term investments with 60 days
or less to maturity at time of purchase are valued at amortized cost, which
approximates market. Portfolio securities for which there are no such
quotations or valuations are valued at fair value as determined in good
faith by or at the direction of the Trustees.
B. REPURCHASE AGREEMENTS -- It is the Portfolios' policy that repurchase
agreements are fully collateralized by U.S. Treasury and Government Agency
securities. All collateral is held by the Portfolios' custodian bank,
subcustodian, or a bank with which the custodian bank has entered into a
subcustodian agreement, or is segregated in the Federal Reserve Book Entry
System. In connection with transactions in repurchase agreements, if the
seller defaults and the value of the collateral declines, or if the seller
enters an insolvency proceeding, realization of the collateral by the
Trusts may be delayed or limited.
C. FUTURES CONTRACTS -- When a Portfolio enters into a futures contract,
it makes an initial margin deposit in a segregated account, either in cash
or liquid securities. Thereafter, the futures contract is marked to market
and the portfolio makes (or receives) additional cash payments daily to the
broker. Changes in the value of the contract are recorded as unrealized
appreciation/depreciation until the contract is closed or settled.
Index futures contracts are used to control the asset mix of the Portfolios
in the most efficient manner. Short index futures contracts are used for
104
GROWTH AND INCOME AND CAPITAL GROWTH PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
hedging purposes, i.e. to reduce the exposure to equities. Long index
futures contracts are used to gain exposure to equities, when it is
anticipated that this will be more efficient than buying stocks directly.
Use of long futures contracts subject the Portfolios to risk of loss up to
the nominal value of the contract. Use of short futures contracts subject
the Portfolios to unlimited losses.
The Portfolios may enter into futures contracts only on exchanges or boards
of trade. The exchange or board of trade acts as the counterparty to each
futures transaction, therefore, the Portfolio's credit risk is limited to
failure of the exchange or board of trade. As of October 31, 2000, the
Portfolios had no outstanding futures contracts.
D. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Investment transactions
are accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified
cost basis. Interest income is accrued as earned. Dividend income is
recorded on the ex-dividend date.
E. FEDERAL INCOME TAXES -- The Portfolios intend to continue to qualify
as partnerships and therefore net investment income and net realized gains
are taxed to the partners. Accordingly, no tax provisions are recorded by
the Portfolios. The investors in the Portfolios must take into account
their proportionate share of the Portfolios' income, gains, losses,
deductions, credits and tax preference items in computing their federal
income tax liability, without regard to whether they have received any cash
distributions from the Portfolio. The Portfolios do not intend to
distribute to investors their net investment income or their net realized
gains, if any. It is intended that the Portfolios will be managed in such a
way that investors in the Portfolio will be able to satisfy the
requirements of subchapter M of the Internal Revenue Code to be taxed as
regulated investment companies.
F. EXPENSES -- Expenses directly attributable to a Portfolio are charged
to that Portfolio; other expenses are allocated on another reasonable
basis.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. INVESTMENT ADVISORY FEE -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor") acts as the
Investment Advisor to the Portfolios. Chase is a direct wholly-owned
subsidiary of The Chase Manhattan Corporation. As Investment Advisor, Chase
supervises the investments of the Portfolios and for such services is paid
a fee.
The fee is computed daily and paid monthly at an annual rate equal to 0.40%
of each Portfolio's average daily net assets.
Chase Fleming Asset Management (USA) Inc. ("CFAM (USA)"), a registered
investment advisor, is the sub-investment advisor to each of the Portfolios
pursuant to a Sub-Investment Advisory Agreement between CFAM (USA) and
Chase. CFAM (USA), formerly Chase Asset Management Inc., is a wholly owned
subsidiary of Chase and is entitled to receive a fee, payable by Chase from
its advisory fee, at an annual rate equal to 0.20% of each Portfolio's
average daily net assets.
105
GROWTH AND INCOME AND CAPITAL GROWTH PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
B. CUSTODIAN FEES -- Chase, as Custodian, provides safekeeping services
for the Portfolios' securities. Compensation for such services is presented
in the Statement of Operations as custodian fees. In addition, custodian
fees are subject to reduction by credits earned by each Portfolio, based on
cash balances held by Chase as custodian. Such earnings credits are
presented separately in the Statement of Operations. The Portfolios could
have invested the cash balances utilized in connection with the earnings
credits arrangements in income producing assets if they had not entered
into such arrangements.
C. ADMINISTRATION FEE -- Pursuant to an Administration Agreement, Chase
(the "Administrator") provides certain administration services to the
Trusts. For these services and facilities, the Administrator receives from
each Portfolio a fee computed at the annual rate equal to 0.05% of the
respective Portfolio's average daily net assets.
3. INVESTMENT TRANSACTIONS
For the year ended October 31, 2000, purchases and sales of investments
(excluding short-term investments) were as follows (in thousands):
GIP CGP
- --------------------------------------------------------------------------------
Purchases (excluding U.S. Government) ...... $ 690,394 $572,612
Sales (excluding U.S. Government) .......... 1,319,968 818,006
Purchases of U.S. Government ............... - -
Sales of U.S. Government ................... - 585
The portfolio turnover rates of GIP and CGP for the year ended October 31, 2000,
were 30% and 66% respectively.
4. FEDERAL INCOME TAX MATTERS
For Federal income tax purposes, the cost and unrealized appreciation
(depreciation) in value of the investment securities at October 31, 2000, are as
follows (in thousands):
GIP CGP
- --------------------------------------------------------------------------------
Aggregate cost ............................. $1,788,611 $655,557
---------- --------
Gross unrealized appreciation .............. $ 505,969 $242,300
Gross unrealized depreciation .............. (88,776) (22,204)
---------- --------
Net unrealized appreciation ................ $ 417,193 $220,096
========== ========
5. CONCENTRATIONS
At October 31, 2000, CGP invested 21.0% of its portfolio in securities issued by
technology sector companies, such as computer hardware and software companies,
internet connectivity providers and telecommunications equipment manufacturers.
Valuations of companies in the technology sector are typically subject to
greater volatility than other sectors.
106
GROWTH AND INCOME AND CAPITAL GROWTH PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
6. TRUSTEE COMPENSATION
The Portfolios have adopted an unfunded noncontributory defined benefit pension
plan covering all independent trustees of the Portfolios who will have served as
an independent trustee for at least five years at the time of retirement.
Benefits under this plan are based on compensation and years of service. Pension
expenses for the year ended October 31, 2000, included in Trustees Fees in the
Statement of Operations, and accrued pension liability included in other accrued
liabilities, respectively, in the Statement of Assets and Liabilities were as
follows (in thousands):
Accrued
Pension Pension
Expenses Liability
- --------------------------------------------------------------------------------
GIP $20 $118
CGP 7 54
7. BANK BORROWINGS
The Portfolios may borrow money for temporary or emergency purposes. Any
borrowings representing more than 5% of a Portfolio's total assets must be
repaid before the Portfolio may make additional investments. The Portfolios have
entered into an agreement, enabling them to participate with other Chase Vista
Funds in an unsecured line of credit with a syndicate of banks, which permits
borrowings up to $350 million, collectively. Interest is charged to each
Portfolio based on its borrowings at an annual rate equal to the sum of the
Federal Funds Rate plus 0.50%. The Portfolios also pay a commitment fee of 0.10%
per annum on the average daily amount of the available commitment, which is
allocated, on a pro-rata basis to the funds. The commitment fee is included in
Other expenses on the Statement of Operations. Borrowings are payable on demand.
The Portfolios had no borrowings outstanding at October 31, 2000, nor at any
point during the year then ended.
107
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Beneficial Unit Holders of Growth and Income Portfolio and
Capital Growth Portfolio
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets present fairly, in all material respects, the financial
position of Growth and Income Portfolio and Capital Growth Portfolio (the
"Portfolios") at October 31, 2000, the results of each of their operations for
the year then ended and the changes in each of their net assets for each of the
two years in the period then ended, in conformity with accounting principles
generally accepted in the United States of America. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Portfolios' management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States of America, which require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included confirmation
of securities at October 31, 2000 by correspondence with the custodian and
brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
December 11, 2000
108
CORE EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS
As of October 31, 2000 (unaudited)
(Amounts in Thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- 96.0%
- --------------------------------------------------------------------------------
COMMON STOCK -- 96.0%
Airlines -- 1.6%
144 Southwest Airlines, Inc. $ 4,098
Automotive -- 0.7%
33 Ford Motor Co. 873
14 General Motors Corp. 845
--------------
1,718
Banking -- 1.9%
32 Bank of America Corp. 1,556
56 Bank of New York Co., Inc. 3,232
--------------
4,788
Biotechnology -- 0.9%
41 Amgen, Inc. * 2,402
Computer Networks -- 2.8%
133 Cisco Systems, Inc. * 7,190
Computer Software -- 4.3%
105 Microsoft Corp. * 7,255
114 Oracle Corp. * 3,750
--------------
11,005
Computers/Computer Hardware -- 7.6%
83 Compaq Computer Corp. 2,536
69 Dell Computer Corp. * 2,025
66 EMC Corp. * 5,876
43 Hewlett-Packard Co. 1,999
31 International Business Machines Corp. 3,061
34 Sun Microsystems, Inc. * 3,761
--------------
19,258
Consumer Products -- 3.5%
47 Avon Products, Inc. 2,282
55 Colgate-Palmolive Co. 3,215
47 Philip Morris Companies, Inc. 1,709
25 Procter & Gamble Co. 1,786
--------------
8,992
Diversified -- 6.1%
224 General Electric Co. 12,253
56 Tyco International LTD (Bermuda) 3,179
--------------
15,432
Electronics/Electrical Equipment -- 2.8%
31 Sanmina Corp. * 3,570
78 Solectron Corp. * 3,433
--------------
7,003
Financial Services -- 9.9%
120 American Express Co. 7,177
98 Charles Schwab Corp. 3,455
129 Citigroup, Inc. 6,802
62 Merrill Lynch & Co., Inc. 4,319
43 Morgan Stanley Dean Witter & Co. 3,490
--------------
25,243
See notes to financial statements.
109
CORE EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000 (unaudited)
(Amounts in Thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Food/Beverage Products -- 3.9%
63 Anheuser-Busch Companies, Inc. $ 2,859
49 Coca-Cola Co. 2,946
85 PepsiCo, Inc. 4,136
--------------
9,941
Health Care/Health Care Services -- 2.3%
46 Guidant Corp. 2,421
63 Medtronic, Inc. 3,400
--------------
5,821
Insurance -- 3.9%
100 American International Group, Inc. 9,796
Internet Services/Software -- 0.9%
44 America Online, Inc. * 2,213
Machinery & Engineering Equipment -- 0.4%
27 Dover Corp. 1,133
Metals/Mining -- 0.8%
68 Alcoa, Inc. 1,959
Multi-Media -- 2.5%
90 The Walt Disney Co. 3,228
41 Time Warner, Inc. 3,145
--------------
6,373
Oil & Gas -- 6.0%
29 BJ Services Co. * 1,521
21 Chevron Corp. 1,714
101 Exxon Mobil Corp. 8,982
50 Royal Dutch Petroleum Co., N.Y. Registered Shares
(Netherlands) 2,995
--------------
15,212
Pharmaceuticals -- 9.0%
32 Abbott Laboratories 1,686
28 American Home Products Corp. 1,749
40 Bristol-Myers Squibb Co. 2,456
24 Eli Lilly & Co. 2,174
25 Johnson & Johnson 2,299
47 Merck & Co., Inc. 4,182
156 Pfizer, Inc. 6,718
29 Pharmacia Corp. 1,595
--------------
22,859
Retailing -- 6.5%
47 Best Buy Co., Inc. * 2,340
61 Home Depot, Inc. 2,619
22 Kohls Corp. * 1,192
131 Wal-Mart Stores, Inc. 5,940
97 Walgreen Co. 4,406
--------------
16,497
See notes to financial statements.
110
CORE EQUITY PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000 (unaudited)
(Amounts in Thousands)
Shares Issuer Value
- --------------------------------------------------------------------------------
Long-Term Investments -- Continued
- --------------------------------------------------------------------------------
Semi-Conductors -- 5.6%
81 Altera Corp. * $ 3,328
42 Applied Materials, Inc. * 2,245
142 Intel Corp. 6,408
48 Texas Instruments, Inc. 2,335
--------------
14,316
Telecommunications -- 4.6%
34 AT&T Corp. 791
52 BellSouth Corp. 2,512
71 SBC Communications, Inc. 4,068
38 Verizon Communications 2,192
88 WorldCom, Inc. * 2,100
--------------
11,663
Telecommunications Equipment -- 3.8%
123 ADC Telecommunications, Inc. * 2,620
4 Avaya, Inc. * 60
22 JDS Uniphase Corp. * 1,790
53 Lucent Technologies, Inc. 1,240
62 Nortel Networks Corp. (Canada) 2,837
18 Qualcomm, Inc. * 1,165
--------------
9,712
Utilities -- 3.7%
48 AES Corp. * 2,689
21 Duke Energy Corp. 1,850
61 Enron Corp. 4,979
--------------
9,518
- ---------------------------------------------------------------------------------
Total Long-Term Investments 244,142
(Cost $197,177)
- ---------------------------------------------------------------------------------
Short-Term Investment -- 4.0%
- ---------------------------------------------------------------------------------
Principal
Amount
REPURCHASE AGREEMENT -- 4.0%
----------------------------
$10,242 Greenwich Capital Markets, Inc., Tri Party, 6.55%,
due 11/01/00, (Dated 10/31/00, Proceeds $10,244,
Secured by GNMA, $10,375, 7.00% through
8.00%, due 07/15/28 through 09/15/30; Market
Value $10,449) 10,242
(Cost $10,242)
- ---------------------------------------------------------------------------------
Total Investments -- 100.0% $254,384
(Cost $207,419)
- ---------------------------------------------------------------------------------
See notes financial statements.
111
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS
As of October 31, 2000 (unaudited)
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- 94.6%
- ---------------------------------------------------------------------------------
COMMON STOCK -- 94.6%
Biotechnology -- 4.3%
191 Amgen, Inc. * $11,069
72 Biogen, Inc. * 4,318
--------------
15,387
Computer Networks -- 5.1%
338 Cisco Systems, Inc. * 18,188
Computer Software -- 6.2%
173 Microsoft Corp. * 11,906
315 Oracle Corp. * 10,379
--------------
22,285
Computers/Computer Hardware -- 13.7%
187 Compaq Computer Corp. 5,673
105 Dell Computer Corp. * 3,103
254 EMC Corp. * 22,606
80 International Business Machines Corp. 7,914
87 Sun Microsystems, Inc. * 9,663
--------------
48,959
Consumer Products -- 1.9%
96 Gillette Co. 3,358
49 Procter & Gamble Co. 3,491
--------------
6,849
Diversified -- 6.9%
403 General Electric Co. 22,069
50 Tyco International LTD (Bermuda) 2,850
--------------
24,919
Financial Services -- 7.0%
284 Charles Schwab Corp. 9,978
131 Merrill Lynch & Co., Inc. 9,147
73 Morgan Stanley Dean Witter & Co. 5,859
--------------
24,984
Food/Beverage Products -- 2.9%
79 Coca-Cola Co. 4,774
119 PepsiCo, Inc. 5,767
--------------
10,541
Health Care/Health Care Services -- 1.8%
30 Medtronic, Inc. 1,609
45 UnitedHealth Group, Inc. 4,966
--------------
6,575
Industrial Components -- 0.4%
12 SPX Corp. * 1,484
Investment Companies -- 1.7%
42 S&P 500 Depositary Receipt 5,987
See notes to financial statements.
112
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000 (unaudited)
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- Continued
- ---------------------------------------------------------------------------------
Multi-Media -- 4.1%
248 The Walt Disney Co. $ 8,890
76 Time Warner, Inc. 5,748
--------------
14,638
Pharmaceuticals -- 12.4%
50 Bristol-Myers Squibb Co. 3,027
63 Eli Lilly & Co. 5,604
46 Johnson & Johnson 4,203
58 Medimmune, Inc. * 3,766
88 Merck & Co., Inc. 7,939
369 Pfizer, Inc. 15,937
70 Pharmacia Corp. 3,838
--------------
44,314
Photographic Equipment -- 0.8%
63 Eastman Kodak Co. 2,805
Restaurants/Food Services -- 1.3%
161 Tricon Global Restaurants, Inc. * 4,833
Retailing -- 6.4%
112 Best Buy Co., Inc. * 5,627
150 Home Depot, Inc. 6,452
239 Wal-Mart Stores, Inc. 10,835
--------------
22,914
Semi-Conductors -- 12.7%
196 Applied Materials, Inc. * 10,398
356 Intel Corp. 16,041
121 KLA-Tencor Corp. * 4,078
262 Novellus Systems, Inc. * 10,719
88 Texas Instruments, Inc. 4,330
--------------
45,566
Telecommunications -- 0.7%
65 Nextel Communications, Inc., Class A * 2,505
Telecommunications Equipment -- 4.3%
64 ADC Telecommunications, Inc. * 1,378
10 Avaya, Inc. * 139
56 JDS Uniphase Corp. * 4,579
125 Lucent Technologies, Inc. 2,903
144 Nortel Networks Corp. (Canada) 6,541
--------------
15,540
- ---------------------------------------------------------------------------------
Long-Term Investments $339,273
(Cost $278,727)
- ---------------------------------------------------------------------------------
See notes to financial statements.
113
EQUITY GROWTH PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
As of October 31, 2000 (unaudited)
(Amounts in Thousands)
Principal
Amount Issuer Value
- ---------------------------------------------------------------------------------
Short-Term Investment -- 7.1%
- ---------------------------------------------------------------------------------
REPURCHASE AGREEMENT -- 7.1%
---------------------------
$25,394 Greenwich Capital Markets, Inc., Tri Party, 6.55%,
due 11/01/00, (Dated 10/31/00, Proceeds $25,399,
Secured by U.S. Government Agency Obligations,
$25,973, 5.75% through 8.00%, due 01/15/07
through 10/20/30; Market Value $25,906) $ 25,394
(Cost $25,394)
- ---------------------------------------------------------------------------------
Total Investments -- 101.7% $364,667
(Cost $304,121)
- ---------------------------------------------------------------------------------
INDEX:
* -- Non-income producing security.
GNMA -- Government National Mortgage Association.
See notes to financial statements.
114
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Statement of Assets and Liabilities As of October 31, 2000 (Unaudited)
(Amounts in Thousands)
Equity
Core Equity Growth
Portfolio Portfolio
- ------------------------------------------------------------------------------------
ASSETS:
Investment securities, at value (Note 1) ......... $254,384 $364,667
Cash ............................................. 1 --
Receivables:
Interest and dividends ....................... 121 66
- ------------------------------------------------------------------------------------
Total Assets ............................... 254,506 364,733
- ------------------------------------------------------------------------------------
LIABILITIES:
Payables:
Investment securities purchased .................. -- 5,778
Accrued liabilities: (Note 2)
Investment advisory fees ..................... 150 223
Administration fees .......................... 11 15
Other ........................................ 79 66
- ------------------------------------------------------------------------------------
Total Liabilities .......................... 240 6,082
- ------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
BENEFICIAL INTERESTS ............................... $254,266 $358,651
- ------------------------------------------------------------------------------------
Cost of investments .............................. $207,419 $304,121
- ------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS.
115
CORE EQUITY PORTFOLIO
Portfolio of Investments
As of December 31, 1999
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- 95.2%
- ---------------------------------------------------------------------------------
Common Stock -- 95.2%
--------------------
Advertising -- 0.6%
13 Omnicom Group $ 1,305
Airlines -- 0.9%
120 Southwest Airlines, Inc. 1,936
Automotive -- 1.1%
28 Ford Motor Co. 1,482
11 General Motors Corp. 790
--------
2,272
Banking -- 2.4%
28 Bank of America Corp. 1,395
47 Bank of New York Co., Inc. 1,865
46 Wells Fargo Co. 1,861
--------
5,121
Biotechnology -- 1.0%
34 Amgen, Inc. * 2,054
Broadcasting/Cable -- 1.6%
43 AT&T Corp. -- Liberty Media Group, Class A * 2,435
12 Clear Channel Communications, Inc. * 1,071
--------
3,506
Chemicals -- 0.8%
26 E.I. DuPont de Nemours Co. 1,726
Computer Networks -- 2.8%
55 Cisco Systems, Inc. * 5,924
Computer Software -- 6.6%
121 Microsoft Corp. * 14,077
Computers/Computer Hardware -- 6.2%
57 Dell Computer Corp. * 2,913
37 EMC Corp. * 4,053
18 Hewlett-Packard Co. 2,034
39 International Business Machines Corp. 4,172
--------
13,172
Consumer Products -- 1.1%
21 Procter & Gamble Co. 2,336
Diversified -- 5.7%
62 General Electric Co. 9,548
65 Tyco International LTD (Bermuda) 2,513
--------
12,061
Electronics/Electrical Equipment -- 1.5%
33 Solectron Corp. * 3,146
Financial Services -- 7.1%
26 American Express Co. 4,289
54 Charles Schwab Corp. 2,090
81 Citigroup, Inc. 4,475
37 Fannie Mae 2,310
15 Morgan Stanley Dean Witter & Co. 2,113
--------
15,277
See notes to financial statements.
116
CORE EQUITY PORTFOLIO
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- Continued
- ---------------------------------------------------------------------------------
Food/Beverage Products -- 2.7%
26 Anheuser-Busch Companies, Inc. $ 1,837
42 Coca-Cola, Co. 2,421
43 PepsiCo, Inc. 1,519
--------
5,777
Health Care/Health Care Services -- 2.3%
45 Colgate-Palmolive Co. 2,953
24 Guidant Corp. * 1,118
23 Medtronic, Inc. 831
--------
4,902
Insurance -- 4.0%
33 American General Corp. 2,530
55 American International Group, Inc. 5,995
--------
8,525
Internet Services/Software -- 1.3%
37 America Online, Inc. * 2,818
Machinery & Engineering Equipment -- 0.9%
15 Applied Materials, Inc. * 1,846
Manufacturing -- 0.8%
31 Honeywell International Inc. 1,761
Metals/Mining -- 1.1%
28 Alcoa, Inc. 2,359
Multi-Media -- 1.2%
34 Time Warner, Inc. 2,476
Oil & Gas -- 7.0%
17 Chevron Corp. 1,494
67 Enron Corp. 2,960
84 Exxon Mobil Corp. 6,760
25 Royal Dutch Petroleum Co., N.Y. Registered Shares
(Netherlands) 1,529
18 Texaco, Inc. 983
44 Williams Companies, Inc. 1,352
--------
15,078
Pharmaceuticals -- 7.0%
29 Abbot Laboratories 1,059
26 American Home Products Corp. 1,017
34 Bristol-Myers Squibb Co. 2,194
20 Eli Lilly & Co. 1,313
21 Johnson & Johnson 1,981
39 Merck & Co., Inc. 2,597
67 Pfizer, Inc. 2,178
37 Schering-Plough Corp. 1,556
14 Warner-Lambert Co. 1,131
--------
15,026
Restaurants/Food Services -- 0.7%
35 McDonald's Corp. 1,410
See notes to financial statements.
117
CORE EQUITY PORTFOLIO
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- Continued
- ---------------------------------------------------------------------------------
Retailing -- 10.8%
29 Bed Bath & Beyond, Inc. * $ 1,016
39 Best Buy Co., Inc. * 1,951
29 Dayton-Hudson Corp. 2,144
47 Gap, Inc. 2,155
69 Home Depot, Inc. 4,750
58 Kroger Co. * 1,100
111 Wal-Mart Stores, Inc. 7,702
80 Walgreen Co. 2,344
--------
23,162
Semi-Conductors -- 3.8%
26 Altera Corp. * 1,303
59 Intel Corp. 4,846
20 Texas Instruments, Inc. 1,928
--------
8,077
Telecommunications -- 6.8%
51 AT&T Corp. 2,601
43 BellSouth Corp. 2,020
27 GTE Corp. 1,879
49 MCI WorldCom, Inc. * 2,597
60 SBC Communications, Inc. 2,934
36 Sprint Corp. (FON Group) 2,413
--------
14,444
Telecommunications Equipment -- 4.7%
62 Lucent Technologies, Inc. 4,651
21 Motorola, Inc. 3,085
23 Nortel Networks Corp. (Canada) 2,318
--------
10,054
Utilities -- 0.7%
20 AES Corp. * 1,488
- ---------------------------------------------------------------------------------
Total Long-Term Investments 203,116
(Cost $142,453)
- ---------------------------------------------------------------------------------
Short-Term Investments 4.9%
- ---------------------------------------------------------------------------------
Principal
Amount
Repurchase Agreement -- 4.9%
---------------------------
$10,464 Greenwich Capital Markets, Inc., in a joint trading
account at 3.50%, due 01/03/00, (Dated 12/31/99,
Proceeds $10,467, Secured by FHLMC, $10,938, 5.75%,
due 09/15/22; Market Value $10,678) 10,464
(Cost $10,464)
- ---------------------------------------------------------------------------------
Total Investments -- 100.1% $213,580
(Cost $152,917)
- ---------------------------------------------------------------------------------
See notes to financial statements.
118
EQUITY GROWTH PORTFOLIO
Portfolio of Investments
As of December 31, 1999
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- 95.0%
- ---------------------------------------------------------------------------------
Common Stock -- 95.0%
--------------------
Airlines -- 0.6%
126 Southwest Airlines, Inc. $ 2,045
Biotechnology -- 5.0%
203 Amgen, Inc. * 12,189
54 Biogen, Inc. * 4,593
28 Genzyme Corp. -- General Division * 1,250
--------
18,032
Broadcasting/Cable -- 0.5%
19 Clear Channel Communications, Inc. * 1,682
Computer Networks -- 3.1%
106 Cisco Systems, Inc. * 11,347
Computer Software -- 6.8%
27 Citrix Systems, Inc. * 3,312
184 Microsoft Corp. * 21,435
--------
24,747
Computers/Computer Hardware -- 8.4%
127 Dell Computer Corp. * 6,473
135 EMC Corp. * 14,730
85 International Business Machines Corp. 9,215
--------
30,418
Consumer Products -- 2.6%
60 Gillette Co. 2,460
66 Procter & Gamble Co. 7,179
--------
9,639
Diversified -- 5.6%
113 General Electric Co. 17,560
74 Tyco International LTD (Bermuda) 2,885
--------
20,445
Electronics/Electrical Equipment -- 1.9%
72 Solectron Corp. * 6,809
Financial Services -- 5.3%
22 American Express Co. 3,583
155 Charles Schwab Corp. 5,939
50 Merrill Lynch & Co., Inc. 4,179
39 Morgan Stanley Dean Witter & Co. 5,528
--------
19,229
Food/Beverage Products -- 2.4%
16 Anheuser-Busch Companies, Inc. 1,155
84 Coca-Cola, Co. 4,894
76 PepsiCo, Inc. 2,689
--------
8,738
Health Care/Health Care Services -- 0.7%
27 Guidant Corp. * 1,256
32 Medtronic, Inc. 1,148
--------
2,404
Insurance -- 0.9%
32 American International Group, Inc. 3,444
Internet Services/Software -- 3.1%
151 America Online, Inc. * 11,402
See notes to financial statements.
119
EQUITY GROWTH PORTFOLIO
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
Shares Issuer Value
- ---------------------------------------------------------------------------------
Long-Term Investments -- Continued
- ---------------------------------------------------------------------------------
Machinery & Engineering Equipment -- 3.6%
104 Applied Materials, Inc. * $ 13,176
Multi-Media -- 1.6%
80 Time Warner, Inc. 5,829
Pharmaceuticals -- 9.5%
53 Abbot Laboratories 1,941
63 American Home Products Corp. 2,489
73 Bristol-Myers Squibb Co. 4,671
51 Eli Lilly & Co. 3,375
48 Johnson & Johnson 4,514
94 Merck & Co., Inc. 6,286
141 Pfizer, Inc. 4,570
75 Schering-Plough Corp. 3,164
44 Warner-Lambert Co. 3,624
--------
34,634
Restaurants/Food Services -- 0.4%
32 McDonald's Corp. 1,293
Retailing -- 9.5%
73 Bed Bath & Beyond, Inc. * 2,548
46 Best Buy Co., Inc. * 2,316
148 Gap, Inc. 6,817
82 Home Depot, Inc. 5,641
206 Kroger Co. * 3,896
199 Wal-Mart Stores, Inc. 13,763
--------
34,981
Semi-Conductors -- 9.5%
172 Intel Corp. 14,177
64 KLA-Tencor Corp. * 7,136
93 Novellus Systems, Inc. * 11,362
25 Texas Instruments, Inc. 2,393
--------
35,068
Telecommunications -- 9.1%
166 AT&T Corp. 8,401
44 Bell Atlantic Corp. 2,698
54 BellSouth Corp. 2,507
29 GTE Corp. 2,060
75 MCI WorldCom, Inc. * 3,992
35 Nextel Communications, Inc., Class A * 3,571
113 SBC Communications, Inc. 5,494
35 Sprint Corp. (FON Group) 2,371
38 Vodafone AirTouch PLC, ADR (United Kingdom) 1,902
--------
32,996
Telecommunications Equipment -- 4.9%
132 Lucent Technologies, Inc. 9,889
53 Motorola, Inc. 7,871
--------
17,760
- ---------------------------------------------------------------------------------
Total Long-Term Investments 346,118
(Cost $200,787)
- ---------------------------------------------------------------------------------
See notes to financial statements.
120
EQUITY GROWTH PORTFOLIO
Portfolio of Investments (Continued)
As of December 31, 1999
(Amounts in Thousands)
Principal
Amount Issuer Value
- ---------------------------------------------------------------------------------
Short-Term Investments -- 5.0%
- ---------------------------------------------------------------------------------
Repurchase Agreement -- 5.0%
---------------------------
$18,146 Greenwich Capital Markets, Inc., in a joint trading
account at 3.50%, due 01/03/00, (Dated 12/31/99,
Proceeds $18,151, Secured by FHLMC, $18,959, 5.75%,
due 09/15/22; Market Value $18,509) $ 18,146
(Cost $18,146)
- ---------------------------------------------------------------------------------
Total Investments -- 100.0% $364,264
(Cost $218,933)
- ---------------------------------------------------------------------------------
INDEX:
* -- Non-income producing security.
ADR -- American Depositary Receipt.
FHLMC -- Federal Home Loan Mortgage Corporation.
See notes to financial statements.
121
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Statement of Assets and Liabilities As of December 31, 1999
(Amounts in Thousands)
Equity
Core Equity Growth
Portfolio Portfolio
=======================================================================================
ASSETS:
Investment securities, at value (Note 1) .......... $213,580 $364,264
Cash .............................................. -- 1
Receivable for interest and dividends ............. 83 160
- ----------------------------------------------------------------------------------------
Total Assets ................................ 213,663 364,425
- ----------------------------------------------------------------------------------------
LIABILITIES:
Payable to Custodian .............................. 181 --
Accrued liabilities: (Note 2)
Investment advisory fees ........................ 113 212
Administration fees ............................. 9 15
Other ........................................... 31 17
- ----------------------------------------------------------------------------------------
Total Liabilities ........................... 334 244
- ----------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
BENEFICIAL INTERESTS ................................ $213,329 $364,181
- ----------------------------------------------------------------------------------------
Cost of investments ............................... $152,917 $218,933
=======================================================================================
See notes to financial statements.
122
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Statement of Operations For the period from August 12, 1999 to December 31, 1999
(Amounts in Thousands)
Equity
Core Equity Growth
Portfolio Portfolio
===============================================================================================
INVESTMENT INCOME:
Dividend ................................................. $ 522 $ 570
Interest ................................................. 192 290
Foreign taxes withheld ................................... (2) (1)
- ------------------------------------------------------------------------------------------------
Total investment income ............................ 712 859
- ------------------------------------------------------------------------------------------------
EXPENSES: (Note 2)
Investment advisory fees ................................. 524 863
Administration fees ...................................... 35 58
Custody and accounting fees .............................. 18 28
Professional fees ........................................ 22 22
Trustees' fees and expenses .............................. 4 2
Other .................................................... 6 6
- ------------------------------------------------------------------------------------------------
Total expenses ..................................... 609 979
- ------------------------------------------------------------------------------------------------
Less amounts waived (Note 2A) ............................ 70 35
- ------------------------------------------------------------------------------------------------
Net expenses .......................................... 539 944
- ------------------------------------------------------------------------------------------------
Net investment income (loss) ....................... 173 (85)
- ------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investment transactions ...... 2,121 (283)
Change in net unrealized appreciation of
investments .............................................. 23,715 67,192
- ------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments .......... 25,836 66,909
- ------------------------------------------------------------------------------------------------
Net increase in net assets from operations ............... $26,009 $66,824
===============================================================================================
See notes to financial statements.
123
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Statement of Changes in Net Assets For the periods indicated
(Amounts in Thousands)
Equity
Core Equity Growth
Portfolio Portfolio
- -------------------------------------------------------------------------------------------------
08/12/99* 8/12/99*
Through Through
12/31/99 12/31/99
================================================================================================
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) $ 173 $ (85)
Net realized gain (loss) on investments 2,121 (283)
Change in net unrealized appreciation of investments 23,715 67,192
- -------------------------------------------------------------------------------------------------
Increase in net assets from operations 26,009 66,824
- -------------------------------------------------------------------------------------------------
TRANSACTIONS IN INVESTORS' BENEFICIAL INTERESTS (Note 1):
Contributions 207,886 332,120
Withdrawals (20,566) (34,763)
- -------------------------------------------------------------------------------------------------
Net increase from transactions in investors'
beneficial interests 187,320 297,357
- -------------------------------------------------------------------------------------------------
Total increase in net assets 213,329 364,181
- -------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period -- --
- -------------------------------------------------------------------------------------------------
End of period $213,329 $364,181
================================================================================================
* Commencement of operations.
See notes to financial statements.
124
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Notes to Financial Statements
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Mutual Fund Master Investment Trust (the "Trust") was organized as a
Massachusetts Business Trust, and is registered under the Investment Company Act
of 1940, as amended, as an open-end management investment company. Core Equity
Portfolio ("CEP") and Equity Growth Portfolio ("EGP"), collectively the
"Portfolios," are separate series of the Trust. The declaration of trust permits
the Trustees to issue beneficial interests in the Portfolios.
On August 12, 1999, the Chase Core Equity Fund and Chase Equity Growth Fund
(separate portfolios of Mutual Fund Investment Trust) contributed 100% of their
investable net assets ($156,409,317 and $240,616,354, respectively) to the newly
created CEP and EGP, in a tax-free exchange.
THE FOLLOWING IS A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE
PORTFOLIOS:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
A. VALUATION OF INVESTMENTS -- Equity securities, purchased options and
futures are valued at the last sale price on the exchange on which they are
primarily traded, including the NASDAQ National Market. Securities for which
sale prices are not available and other over-the-counter securities are
valued at the last quoted bid price. Bonds and other fixed income securities
(other than short-term obligations), including listed issues, are valued on
the basis of valuations supplied by pricing services or by matrix pricing
systems of a major dealer in bonds. Short-term debt securities with 61 days
or more to maturity at time of purchase are valued, through the 61st day
prior to maturity, at market value based on quotations obtained from market
makers or other appropriate sources; thereafter, the value on the 61st day is
amortized on a straight-line basis over the remaining number of days to
maturity. Short-term investments with 60 days or less to maturity at time of
purchase are valued at amortized cost, which approximates market. Portfolio
securities for which there are no such quotations or valuations are valued at
fair value as determined in good faith by or at the direction of the
Trustees.
B. REPURCHASE AGREEMENTS -- Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the Portfolios may transfer uninvested
cash balances into one or more joint trading accounts for the purpose of
investing in repurchase agreements. It is the Portfolios' policy that
repurchase agreements are fully collateralized by U.S. Treasury and
Government Agency securities. All collateral is held in one or more joint
trading accounts by the Portfolios' custodian bank, subcustodian, or a bank
with which the custodian bank has entered into a subcustodian agreement, or
is segregated in the Federal Reserve Book Entry System. In connection with
transactions in repurchase agreements, if the seller defaults and the value
of the collateral declines, or if the seller enters an insolvency proceeding,
realization of the collateral by the Trusts may be delayed or limited.
125
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Notes to Financial Statements (Continued)
C. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Investment transactions
are accounted for on the trade date (the date the order to buy or sell is
executed). Securities gains and losses are calculated on the identified cost
basis. Interest income is accrued as earned. Dividend income is recorded on
the ex-dividend date.
D. FEDERAL INCOME TAXES -- The Portfolios intend to continue to qualify as
partnerships and therefore net investment income and net realized gains are
taxed to the partners. Accordingly, no tax provisions are recorded by the
Portfolios. The investors in the Portfolios must take into account their
proportionate share of the Portfolios' income, gains, losses, deductions,
credits and tax preference items in computing their federal income tax
liability, without regard to whether they have received any cash
distributions from the Portfolio. The Portfolios do not intend to distribute
to investors their net investment income or their net realized gains, if any.
It is intended that the Portfolios will be managed in such a way that
investors in the Portfolio will be able to satisfy the requirements of
subchapter M of the Internal Revenue Code to be taxed as regulated investment
companies.
E. EXPENSES -- Expenses directly attributable to a Portfolio are charged to
that Portfolio; other expenses are allocated on another reasonable basis.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
A. INVESTMENT ADVISORY FEE -- Pursuant to separate Investment Advisory
Agreements, The Chase Manhattan Bank ("Chase" or the "Advisor") acts as the
Investment Advisor to the Portfolios. Chase is a direct wholly-owned
subsidiary of The Chase Manhattan Corporation. As Investment Advisor, Chase
supervises the investments of the Portfolios and for such services is paid a
fee.
The fee is computed daily and paid monthly at an annual rate equal to 0.75%
of the Portfolios' average daily net assets.
Chase Bank of Texas N.A. ("Chase Texas"), a registered investment advisor, is
the sub-investment advisor to each of the Portfolios pursuant to a
Sub-Investment Advisory Agreement between Chase Texas and Chase. Chase Texas
is a wholly-owned subsidiary of Chase and is entitled to receive a fee,
payable by Chase from its advisory fee, at an annual rate equal to 0.375% of
each Portfolio's average daily net assets.
For the period from August 12, 1999 to December 31, 1999, the Advisor
voluntarily waived advisory fees of $69,918 and $34,534 for CEP and EGP,
respectively.
B. ADMINISTRATION FEE -- Pursuant to an Administration Agreement, Chase (the
"Administrator") provides certain administration services to the Portfolios.
For these services and facilities, the Administrator receives from each
Portfolio a fee computed at the annual rate equal to 0.05% of the respective
Portfolio's average daily net assets.
126
CORE EQUITY AND EQUITY GROWTH PORTFOLIOS
Notes to Financial Statements (Continued)
3. INVESTMENT TRANSACTIONS
For the period from August 12, 1999 to December 31, 1999, purchases and sales of
investments (excluding short-term investments) were as follows (in thousands):
CEP EGP
- ---------------------------------------------------------------------------------
Purchases (excluding U.S. Government) ......... $43,236 $52,438
Sales (excluding U.S. Government) ............. 11,187 1,116
The portfolio turnover rates of CEP and EGP for the period from August 12, 1999
to December 31, 1999, were 6% and 1% respectively.
4. FEDERAL INCOME TAX MATTERS
For Federal income tax purposes, the cost and unrealized appreciation
(depreciation) in value of the investment securities at December 31, 1999, are
as follows (in thousands):
CEP EGP
- -------------------------------------------------------------------------------------
Aggregate cost ............................... $152,948 $219,810
-------- --------
Gross unrealized appreciation ................ $ 62,562 $145,253
Gross unrealized depreciation ................ (1,930) (799)
-------- --------
Net unrealized appreciation .................. $ 60,632 $144,454
======== ========
127
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Beneficial Unit Holders of
Mutual Fund Master Investment Trust
In our opinion, the accompanying statements of assets and liabilities, including
the portfolios of investments, and the related statements of operations and of
changes in net assets present fairly, in all material respects, the financial
position of Core Equity Portfolio and Equity Growth Portfolio (separate
portfolios of Mutual Fund Master Investment Trust, hereafter referred to as the
"Trust") at December 31, 1999, and the results of each of their operations and
the changes in each of their net assets for the period August 12, 1999
(commencement of operations) through December 31, 1999, in conformity with
accounting principles generally accepted in the United States. These financial
statements are the responsibility of the Trust's management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1999 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
February 10, 2000
128
CHASE VISTA FUNDS SPECIAL MEETING OF SHAREHOLDERS (Unaudited)
A Special Meeting of Shareholders was held on February 15, 2000 at 1211
Avenue of the Americas, New York, New York for purposes of approving the
election of fourteen Trustees of Mutual Fund Master Investment Trust. A
majority of shareholders of Chase Vista Core Equity Fund and Chase Vista
Equity Growth Fund, each a series of Mutual Fund Group, and a majority of
shareholders of Chase Core Equity Fund and Chase Equity Growth Fund, each a
series of Mutual Fund Investment Trust, approved the election of each
Trustee. The number of votes cast in this matter were:
Affirmative Negative
------------- ----------
Fergus Reid, III 9,226,606 26,946
H. Richard Vartabedian 9,226,513 27,039
William J. Armstrong 9,226,606 26,946
John R.H. Blum 9,226,431 27,121
Stuart W. Cragin, Jr. 9,226,606 26,946
Roland R. Eppley, Jr. 9,226,606 26,946
Joseph J. Harkins 9,226,606 26,946
Sarah E. Jones 9,230,003 23,549
W.D. MacCallan 9,226,606 26,946
George E. McDavid 9,226,606 26,946
W. Perry Neff, Trustee 9,226,431 27,121
Leonard M. Spalding, Jr. 9,226,513 27,039
Richard E. Ten Haken 9,226,606 26,946
Irving L. Thode 9,226,431 27,121
129
TAX LETTER (UNAUDITED)
CHASE VISTA GROWTH AND INCOME FUND CHASE VISTA EQUITY INCOME FUND
CHASE VISTA CAPITAL GROWTH FUND CHASE VISTA SMALL CAP OPPORTUNITIES FUND
CHASE VISTA LARGE CAP EQUITY FUND CHASE VISTA SMALL CAP EQUITY FUND
CHASE VISTA FOCUS FUND CHASE VISTA BALANCED FUND
- --------------------------------------------------------------------------------
Certain tax information for the Chase Vista Mutual Funds is required to be
provided to shareholders based upon the Funds' income and distributions for the
taxable year ended October 31, 2000. The information and distributions reported
in this letter may differ from the information and distributions taxable to
shareholders for the calendar year ending December 31, 2000. The information
necessary to complete your income tax returns for the calendar year ending
December 31, 2000 will be received under a separate cover.
FOR THE FISCAL YEAR ENDED OCTOBER 31, 2000:
The following represents the source and percentage of income earned from
government obligations, the percentage of distributions eligible for the
dividends received deduction and the per share long-term capital gains
distributed by the Funds:
FEDERAL HOME LONG-TERM
LOAN MORTGAGE FEDERAL NATIONAL DIVIDENDS CAPITAL GAINS
CHASE U.S. TREASURY CORPORATION MORTGAGE ASSOCIATION RECEIVED DISTRIBUTION
VISTA FUND OBLIGATIONS OBLIGATIONS OBLIGATIONS DEDUCTION PER SHARE
- ------------------------------------------------------------------------------------------------------------------------------------
GROWTH AND INCOME ......................... -- -- -- 100.00% $6.31
CAPITAL GROWTH ............................ -- -- -- -- 3.62
LARGE CAP EQUITY .......................... -- -- -- 99.63% 1.06
FOCUS ..................................... -- -- -- -- --
EQUITY INCOME ............................. -- -- -- -- 0.74
SMALL CAP OPPORTUNITIES ................... -- -- -- -- --
SMALL CAP EQUITY .......................... -- -- -- -- 2.65
BALANCED .................................. 19.73% 8.66% 15.64% 14.15% 0.93
See notes to financial statements.
130
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CHASE VISTA EQUITY FUNDS ANNUAL REPORT
- --------------------------------------------------------------------------------
INVESTMENT ADVISER,
ADMINISTRATOR,
SHAREHOLDER AND FUND SERVICING
AGENT AND CUSTODIAN
The Chase Manhattan Bank
DISTRIBUTOR
Vista Fund Distributors, Inc.
TRANSFER AGENT
DST Systems, Inc.
LEGAL COUNSEL
Simpson Thacher & Bartlett
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
Chase Vista Funds are distributed by
Vista Fund Distributors, Inc., which is
unaffiliated with The Chase Manhattan
Bank. Chase and its respective affiliates
receive compensation from Chase Vista
Funds for providing investment advisory
and other services.
- --------------------------------------------------------------------------------
This report is submitted for the general information of the shareholders of the
funds. It is not authorized for distribution to prospective investors in the
funds unless preceded or accompanied by a prospectus.
To obtain a prospectus for any of the Chase Vista Funds, call 1-800-348-4782.
The prospectus contains more complete information, including charges and
expenses. Please read it carefully before you invest or send money.
- --C-The Chase Manhattan Corporation, 2000. All Rights Reserved. December 2000
- --------------------------------------------------------------------------------
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Chase Vista Funds Fulfillment Center
393 Manley Street
West Bridgewater, MA 02379-1039